Assume that you own 200 shares of General Dynamics Corp. (GD) selling at $90 per share. In order to make the stock more affordable for the average investor, GD's management has decided to split the stock.
a. How much was your investment worth prior to the split?
b. Assuming GD's management decides to split the stock three-for-one, how many shares would you own after the split?
c. What would the new price per share be immediately after the split?
d. How much would your investment be worth after the three-for-one split?