Question

JPix management is considering a stock split. JPix currently sells for $70 per share and a 3-for-1 stock split is contemplated. What will be the company's stock price following the stock split, assuming that the split has no effect on the total market value of JPix's equity

Answer 1

$23

Step-by-step explanation:

Calculation to determine What will be the company's stock price following the stock split, assuming that the split has no effect on the total market value of JPix's equity

P0=70, Split = 3 for 1, New P0?

P0 new= $70/(3/1)

P0 new=$70/3

P0 new= $23

Therefore What will be the company's stock price following the stock split, assuming that the split has no effect on the total market value of JPix's equity is $23