The common stock of Fido Corporation was trading at $45 per-share on October 15, 2014. A year later, on October 15, 2015, it was trading at $80 per share. On this date, Fidos Board of Directors decided to split the companys common stock.

a. If the company decides on a 2-for-1 split, at what price would you expect the stock to trade immediately after the split goes into effect?

b. If the company decides on a 4-for-1 split, at what price would you expect the stock to trade immediately after the split goes into effect?

c. Why do you think Fidos Board of Directors decided to split the companys stock?