FOUNDATIONS OF FINANCE- MYFINANCELAB
FOUNDATIONS OF FINANCE- MYFINANCELAB
10th Edition
ISBN: 9780135160572
Author: KEOWN
Publisher: PEARSON
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Chapter 13, Problem 1.2MC

The executive vice-president in charge of finance believes the price will not fall in proportion to the size of the split and will only fall 45 percent because she thinks the pre-split price is above the optimal price range. If she is correct, what will be my net gain from the split?

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A stock split usually results in:A. Higher stock priceB. Lower number of outstanding sharesC. Increased total market valueD. Lower stock price but same market capitalization need help
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