Question: A company has just announced a 2-for-1 stock split, effective immediately. Prior to the split, the company had a market value of $9 billion with

 A company has just announced a 2-for-1 stock split, effective immediately.

A company has just announced a 2-for-1 stock split, effective immediately. Prior to the split, the company had a market value of $9 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.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!