3.

The common stock of ABC Corporation was trading at $50 per share on October 15, 2018. A year later, on October 15, 2019, it was trading at $80 per share. On this date, ABC's board of directors decided to split the company's common stock.

If the company decides on a 4-for-1 split, at what price would you expect the stock to trade immediately after the split goes into effect?

. Single choice.

a $25

b $40

c $20

d None of these