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Case Study #2

Data:

You own 200 shares of ABC Stock selling at $410 per share. In order to make the stock more affordable for the average investor, ABC’s management has decided to split the stock.

Calculations:

a. How much was your investment worth before the split?

b. Assuming ABC’s management decides to split the stock three-for-one, how many shares would you own after the split?

c. What is the new price per share after the split?

d. How much would your investment be worth after the three-for-one split?

 



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