Question 1: Johana Alfredo, a woman of 45 years old owns 8 percent of the BBVA Corporations 30,000 shares of common stock, which most recently traded for a price of $98 per share. The company has since declared its plans to engage in a two-for-one stock split.

1. What will her financial position be after the stock split, compared to her current position? (Hint: Assume the stock price falls proportionately.)
2. An expert of finance believes the price will not fall in proportion to the size of the split and will only fall 45 percent because she thinks the pre-split price is above the optimal price range. If she is correct, what will be Johanas net gain from the split?