Question

Lea

owhs 800 shares of ABC, Incorporated. On April 6, the corporation Instituted a 5-for-2 stock split. Before the split, each share was worth $42.60.
a. How many shares did Lea hold after the split?
b. What was the post-split price per share?
c. Show that the split was a monetary non-event for Lea. Pre-split and post-split market values=

Answer 1

2000

Explanation:

Number of shares after split is 5/2 times the pre split value =800*5/2 = 2000