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Finance

Problem:

Grullon Co. is considering a 9-for-5 stock split. The current stock price is $85.00 per share, and the firm believes that its total market value would increase by 7% as a result of the improved liquidity that should follow the split.

Required:

What is the stock's expected price following the split?

A) $47.50

B) $48.00

C) $51.54

D) $50.53

E) $61.14

Note: Please show how to work it out.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162760

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