The common stock of Fido Corporation was trading at $45 per share on October 15, 2010. A

Question:

The of Fido was trading at $45 per share on October 15, 2010. A year later, on October 15, 2011, it was trading at $80 per share. On this date, Fido’s board of directors decided to split the company’s .
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 Fido’s board of directors decided to split the company’s stock?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...