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CISE 11.10 of a Stock Split Th e common stock of Fido Corporation was trading at $45 per share on October 15, 2010. A year
CISE 11.10 of a Stock Split Th e common stock of Fido Corporation was trading at $45 per share on October 15, 2010. A year later, on October 15, 2011, it was trading at $80 per share. On this date, Fido's board of directors decided to split the company's common stock. If the company decides on a 2-for-1 split, at what price would you expect the stock to trade immediately after the split goes into effect? a. b. If the company decides on a 4-for-1 split, at what price would you expect the stock to trade immediately after the split goes into effect? Why do you think Fido's board of directors decided to split the company's stock? c
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