esterday, Berryman Investments was selling for $50 per share. Today, the company completed a 7-for-2 stock split. If the total m

Question

3 years ago

6

esterday, Berryman Investments was selling for $50 per share. Today, the company completed a 7-for-2 stock split. If the total m

arket value was unchanged by the split, what is the price of the stock today? Select the correct answer. a. $15.59 b. $12.99 c. $14.29 d. $16.89 e. $11.69

Business

1 answer:

boyakko [2] · Answer 1 · 2022-04-26T15:19:11+03:00

Answer:

The correct option is C, $14.29

Explanation:

A 7-2 stock split means that 7 shares now have the value of 2 shares held previously.

This simply means that a stockholder who had 2 shares before the stock split now has 7 shares.

The price of the share after the stock split the value of 2 shares before stock split divided by 7 shares i.e ($50*2)/7=$ 14.29

The correct option from the multiple choices is $ 14.29