Question

A corporation has 41,770 shares of $35 par stock outstanding that has a current market value of $292 per share. If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately a.$1,168.00 b.$8.75 c.$73.00 d.$257.00

Answer 1

c. $73.00 per share

Step-by-step explanation:

The computation of market value of the stock will fall to approximately is shown below:-

The market value of the stock will fall to approximately = Market value per share ÷ 4-for-1 stock split

= $292 ÷ 4-for-1 stock split

= $73.00 per share

Therefore for computing the market value of the stock will fall to approximately we simply applied the above formula.