Question
You have 10 shares of Facebook common stock and each share currently trades at $90. Facebook is contemplating a stock split or stock dividend. The
You have 10 shares of Facebook common stock and each share currently trades at $90. Facebook is contemplating a stock split or stock dividend. The split or stock dividend will have no effect on the market value of its equity. After each of the below independent scenarios compute:
1. How many shares of Facebook stock do you have?
2. What is the price of each share of Facebook stock?
3. What is the total value of your Facebook shares?
a. Facebook has a 2 for 1 stock split
b. Facebook has a 3 for 2 stock split
c. Facebook has a 1 for 2 reverse stock split
d. Facebook has a 5 percent stock dividend
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