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
Related questions
Question
16) Can i please get help with this question
Transcribed Image Text:Zozan Corp has 47,500 shares of stock outstanding with a par value of $1.00 per share and a market price of $12 a share. The firm just announced a 3-
for-2 stock split. What will the market price per share be after the split? (Do not use the dollar($) sign in your answer).
Numeric Response
Expert Solution
Step 1
Stock Split:
- A stock split for a company increases the number of shares, however, the price of stock decreases.
Information Provided:
Shares = 47,000
Par value = $1.00 per share
Market price = $12
Stock split = 3-for-2
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