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22 January, 06:39

esterday, Berryman Investments was selling for $50 per share. Today, the company completed a 7-for-2 stock split. If the total market value was unchanged by the split, what is the price of the stock today? Select the correct answer. a. $15.59 b. $12.99 c. $14.29 d. $16.89 e. $11.69

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  1. 22 January, 09:41
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    The correct option is C, $14.29

    Explanation:

    A 7-2 stock split means that 7 shares now have the value of 2 shares held previously.

    This simply means that a stockholder who had 2 shares before the stock split now has 7 shares.

    The price of the share after the stock split the value of 2 shares before stock split divided by 7 shares i. e ($50*2) / 7=$ 14.29

    The correct option from the multiple choices is $ 14.29
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