Question
Alpha Co. currently has 500,000 shares outstanding each selling for $130. It is contemplating a 2-for-1 stock split. The firm believes that its total market
Alpha Co. currently has 500,000 shares outstanding each selling for $130. It is contemplating a 2-for-1 stock split. The firm believes that its total market value would remain constant after the split.
1. What is the alpha’s expected price after the split? *
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Since the total market value of the company is expected to remain constant after the s...
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
