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kobusy [5.1K]
3 years ago
13

katelyn owns 140 shares of a stock that sells for $39 a share before a 3-for-2 split is announced. After the split, how many sha

res of the stock will Katelyn own and what will they be worth?
Mathematics
1 answer:
____ [38]3 years ago
3 0

Answer: Katelyn will have 210 shares that worth for $26 a share.

Step-by-step explanation:

After a 3-for-2 stock split, Katelyn will have three shares for every two shares you used to own.

Since, Initially, Katelyn owns 140 shares of a stock

Therefore, New number of shares Katelyn has = 140 × 3/2 = 210

And, Since, initially one share cost = $ 39

Therefore, After  3-for-2 stock split, the price of the shares = \frac{39}{3/2} = 26

Thus, They will worth $26 a share.

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