Downie Foods recently completed a 4-for-1 stock split. Prior to the split, its stock sold for $100 per share. If the firm's total market value increased by 5% as a result of increased liquidity caused by the split, what was the stock price following the split?

Select the correct answer.

a. $24.80

b. $27.70

c. $26.25

d. $30.60

e. $29.15