A.) A company has just announced a 3-for-1 stock split, effective immediately. Prior to the split, the company had a market value of $6 billion with 50 million shares outstanding. Assuming that the split conveys no new information about the company, what is the value of the company, the number of shares outstanding, and price per share after the split?

The market value of the company is $ ?? billion. (Round your response to the nearest whole number.)

The number of shares after the split is $ ?? million. (Round your response to the nearest whole number.)

The new price per share is $ ?? per share. (Round your response to two decimal places.)

B.) If the actual market price immediately following the split is $41.00 per share, what does this tell us about market efficiency? Select one option below.

A. The market is efficient. The company is actively developing, and the stock return is expected to increase. Therefore, the price fully reflects available information.

B. No market failure is present. The market value of the securities is underestimated; therefore, the price per share is rising until Rof=R*.

C. Market efficiency is uncertain. The price could indicate both market efficiency or failure depending on whether or not the stock split actually conveyed information about the company.

D. The market is inefficient. Some type of anomaly may have occurred and the stock price should be higher.