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AA is a pharmaceutical company and plants to adopt a stock splits by giving 2 stocks for 1 existing stocks The current stock price per

AA is a pharmaceutical company and plants to

adopt a stock splits by giving

2

stocks for

1

existing stocks

The current stock price per share is

$50

The company's managers believe the total market value would

increase by

5%

This is because of the expected improvement in companies' liquidity that will follow the company's plan

Find the stock's expected price immediately after the stock split.

Less than $25.00

[$25.00,$26.50]

[$26.5,$28.50]
More than $28.50

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