Assume that you own 250 shares of GFK Group setting at $120 per share. Due to the high price and the state of the economy, management decided to split the stocks to make it more affordable for investors.

a. How much was your investment prior to the split? 1mk

b. Assuming the decision of management is a four for 1, how many shares would you now own? Assuming a three for 1,? 2 mks

c. What would be the new price of the stock immediately after the split? 1 mk

d. How much would your investment be worth after the 4-1 split. After the 3-1 split?