Question

Yesterday, Berryman Investments was selling for $90 per share. Today, the company completed a 7-for-2 stock split. If the total market value was unchanged by the split, what is the price of the stock today? (Do not include the $ sign in your answer).

Answer 1

Answer:

$26 per share

Explanation:

The computation of the today stock price is shown below:

= Selling price of per share ÷ (number of completed ÷ number of stock split)

= $90 ÷ (7 ÷ 2)

= $90 ÷ 3.5

= $26 per share

We first divide the number of completed with the number of stock split. The value come is divided to selling price per share so that the accurate price of the stock can come.

Answer 2

Answer:

25.71

Explanation:

For every two shares held in the past, the investor gets seven. Thus, for every $180 worth of shares ($90 x 2), an investor gets seven, thus $180/7= $25.714 (approx).