17-8A. (Stock split) You own 5 percent of the Trexco Corporation's common stock, which recently sold for $98 prior to a planned two-for-one stock split announcement. Before the split there are 25,000 shares ofcommon stock outstanding.

a. Relative to now, what will be your financial position after the stock split? (Assume the stock price falls proportionately.)

b. The executive vice-president in charge of finance believes the price will only fall 40 percent after the split because she feels the price is above the optimal price range. If she is correct, what will be your net gain?