Question

Becker Financial recently declared a 2-for-1 stock split. Prior to the split, the stock sold for $60 per share. If the firm's total market value is unchanged by the split, what will the stock price be following the split?a. $35.28b. $39.53c. $42.50d. $33.58e. $33.15

Answer 1

$30

Step-by-step explanation:

In a 2 for 1 split, for every 1 share owned, the shareholder receives 2 shares

share price after split = share price before split / 2 = $60 / 2 = $30