Question
Pohlman Corp. is considering a 3-for-1 stock split. The stock currently sells for $48 per share. (a) What will the price of the stock be
Pohlman Corp. is considering a 3-for-1 stock split. The stock currently sells for $48 per share.
(a) What will the price of the stock be after the split?
(b) Before the split, you have 100 shares of Pohlman. How many shares do you have after the split?
(c) What was the value of your investment (if you have 100 shares before the split) before and after the split? How has the split changed (or not changed) the overall value of your investment in Pohlman?
Step by Step Solution
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Step: 1
a After a 3for1 stock split the number of shares will increase while the price per share dec...
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
