Question

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 shares of the stock will Katelyn own and what will they be worth?

Answer 1

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

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 =
`(39)/(3/2)` = 26

Thus, They will worth $26 a share.