Rocky Ground Camping Supply Inc. has $200,000$ shares of stock outstanding, each with a market value of $$15.$ In addition, on the balance sheet the common stock account has a balance of $$1,950,000$ and retained earnings of $$1,450,000.$ If the firm declares a $4-$for$-1$ stock split, what is the stock's market value after the split? Assume there are no taxes or transaction costs.

Question $1$Answer

a$.$

$$3\mathrm{.}75$

b$.$

$$5\mathrm{.}00$

c$.$

$$7\mathrm{.}50$

d$.$

$$10\mathrm{.}00$

e$.$

$$12\mathrm{.}50$