Final answer:
After a 6-for-5 stock split, Heidi will own 1,080 shares of Boyd Enterprises. The new share price will be $55.82 per share. The correct answer is A) 1,080; $55.82.
Step-by-step explanation:
Heidi owns 900 shares of Boyd Enterprises, and the company is planning a 6-for-5 stock split.
In a 6-for-5 stock split, for every 5 shares that a shareholder owns they will receive an additional 1 share. To find out how many shares Heidi will have after the stock split, we use the following calculation:
Number of shares after split = (Original number of shares × 6) ÷ 5
Heidi's shares after split = (900 × 6) ÷ 5
= 1080 shares
Next, to find the new share price after the stock split, we take the original price and adjust it based on the split ratio:
New share price = Original share price ÷ Split ratio
New share price = $66.98 ÷ (6/5)
= $55.82
After the stock split, Heidi will own 1,080 shares and the new share price will be $55.82 per share.
Therefore, the correct answer is A) 1,080; $55.82.