Question 2Suppose you own 5% of Coastal Corporation's 400,000 outstanding common shares. The stock was trading for$165 per share before Coastal executives announced a 3-for-2 stock split. After the split, you will ownshares worthper share.30,000; $11022,500; $110O 10,000; $165O 30,000; $1651 ptsO 15,000; $110

Total Shares = 400,000Shares held = 5% * Total Shares = 5% *400,000 = 20,000 sharesShare price =…

Answered: Suppose you own 5% of Coastal…

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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Suppose you own 5% of Coastal Corporation's 400,000 outstanding common shares. The stock was trading for $165 per share before Coastal executives announced a 3-for-2 stock split. After the split, you will own shares worth per share.