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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 15,000 shares in company A, which currently has 250,000 shares
outstanding. The share sells for $25 on the open market. Company A's management has
decided on a 2-1 split.
a) Will your financial position change after the split, assuming that the share price
will fall proportionately?
b) Assuming only a 30% decrease in the value of each share, what will your value
be after the split?
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