Assume a company declares a 3-for-2 stock split. The pre-split price is $300 per share. You own 100 shares of the stock prior to the split. Which of the following statements characterizes your position after the split? a) you own 50 shares of a $600 per share stock b) you own 150 shares of a $200 per share stock c) you own 150 shares of a $450 per share stock d) you own 200 shares of a $150 per share stock
Assume a company declares a 3-for-2 stock split. The pre-split price is $300 per share. You own 100 shares of the stock prior to the split. Which of the following statements characterizes your position after the split? a) you own 50 shares of a $600 per share stock b) you own 150 shares of a $200 per share stock c) you own 150 shares of a $450 per share stock d) you own 200 shares of a $150 per share stock
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Assume a company declares a 3-for-2 stock split. The pre-split price is $300 per share. You own 100 shares of the stock prior to the split. Which of the following statements characterizes your position after the split?
- a) you own 50 shares of a $600 per share stock
- b) you own 150 shares of a $200 per share stock
- c) you own 150 shares of a $450 per share stock
- d) you own 200 shares of a $150 per share stock
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