c17 q11

Stock split. If a company declares a 4-for-3 stock split, the price before the split is $90, and the price after the split is $67.5, show that a current shareholder is no better off after the split. Current shareholders are no better off after the 4-for-3 split because if they owned three shares at $90 per share before the split, they would then own shares worth $67.5 each immediately after the split. (Select from the drop-down