Answer:
b. $33.75
Step-by-step explanation:
The computation of the stock's expected price after considering the stock split is shown below:
= (Current stock price × stock split ratio × 1 + increase percentage) ÷ stock split ratio
= ($75 × 3 × 1 + 0.05) ÷ 7
= 236.25 ÷ 7
= $33.75
Simply we consider the stock split ratio for computing the stock expected price. The 3 for 7 stock split ratio is relevant for the computation part