Question: Verify that Jons method works to determine the post-split price and shares outstanding for HVC, which executed a 4-for-1 split on July 10 with 22,676,800

Verify that Jon’s method works to determine the post-split price and shares outstanding for HVC, which executed a 4-for-1 split on July 10 with 22,676,800 outstanding shares and a market price of $203.80 per share before the split.

Jon noticed that most traditional splits are in the form x-for-1. He says that in those cases, all you need do is multiply the number of shares held by x and divide the price per share by x to get the post-split numbers.

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The verification is that i The theoretical and actual price per share before the split 203... View full answer

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