Question

X 20. Yesterday, Tenser Inc. executed a 2-for-1 split. Kaylee was holding 500 shares of the stock before the split and each was

worth $34.12. How many shares did she hold after the split? What was the post-split price per share?
Points
0
/1

Answer 1

Step-by-step explanation:

Kaylee held 1000 shares after the split. The post-split price per share was $17.06.

Step-by-step explanation:

Before the split, Kaylee held 500 shares of the stock, and each share was worth $34.12. So, her total investment was 500 x $34.12 = $17,060.

After the 2-for-1 split, each share is split into 2 shares. So, the total number of shares she holds becomes 500 x 2 = 1000.

To find the post-split price per share, we divide the pre-split price by 2.

Post-split price per share = $34.12 / 2 = $17.06.