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Assume that an investor owns 2,500 shares of $10 par value common stock and the company has a 5-for-1 stock split when the market price
Assume that an investor owns 2,500 shares of $10 par value common stock and the company has a 5-for-1 stock split when the market price per share is $62.50.
Required:
- How many shares of common stock will the investor own after the stock split?
- What will probably happen to the market price per share of the stock?
Note: Round your answer to 2 decimal places.
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