Ask Question
6 February, 11:01

esterday, Berryman Investments was selling for $50 per share. Today, the company completed a 7-for-2 stock split. If the total market value was unchanged by the split, what is the price of the stock today? Select the correct answer. a. $15.59 b. $12.99 c. $14.29 d. $16.89 e. $11.69

+4
Answers (1)
  1. 6 February, 11:10
    0
    The correct option is C, $14.29

    Explanation:

    A 7-2 stock split means that 7 shares now have the value of 2 shares held previously.

    This simply means that a stockholder who had 2 shares before the stock split now has 7 shares.

    The price of the share after the stock split the value of 2 shares before stock split divided by 7 shares i. e ($50*2) / 7=$ 14.29

    The correct option from the multiple choices is $ 14.29
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “esterday, Berryman Investments was selling for $50 per share. Today, the company completed a 7-for-2 stock split. If the total market value ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers