Question
Josie owns 800 shares of Innovative Marketing Strategies Inc. It currently has a share price of $87.00 per share. The board is considering a three
Josie owns 800 shares of Innovative Marketing Strategies Inc. It currently has a share price of $87.00 per share. The board is considering a three for two stock split.
How much is Josie's investment in IMS BEFORE the split?
How many shares will Josie own AFTER the split?
What will each share be worth AFTER the split? How much will Josie have invested in IMS AFTER the split?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Before the split Josies investment in IMS is worth 800 shares x 8700 per share 7...
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Step: 2
Step: 3
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Concepts In Federal Taxation
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
19th Edition
978-0324379556, 324379552, 978-1111579876
