Problemtoombs media corp recently completed a 3-for-1 stock, Ask an Expert

Accounting

Problem:

Toombs Media Corp. recently completed a 3-for-1 stock split. Prior to the split, its stock sold for $80 per share. The firm's total market value was unchanged by the split.

Requirement:

Question: Other things held constant, what is the best estimate of the stock's post-split price?

a. $30.67

b. $25.33

c. $26.40

d. $22.40

e. $26.40

Note: Please answer in proper manner and show all computations

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91173434

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