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Assume you own 1 5 , 0 0 0 shares in company A , which currently has 2 5 0 , 0 0 0 shares
Assume you own shares in company A which currently has shares
outstanding. The share sells for $ on the open market. Company As management has
decided on a split.
a Will your financial position change after the split, assuming that the share price
will fall proportionately?
b Assuming only a decrease in the value of each share, what will your value
be after the split?
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