Alpha Co. currently has 500,000 shares outstanding each selling for $130. It is contemplating a 2-for-1 stock

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Alpha Co. currently has 500,000 shares outstanding each selling for $130. It is contemplating a 2-for-1 stock split. The firm believes that its total market value would remain constant after the split.

1. What is the alpha’s expected price after the split? *

Related Book For answer-question

Foundations of Financial Management

ISBN: 978-1259024979

10th Canadian edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

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Posted Date: Feb 29, 2024 01:20 AM

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Alpha Co. currently has 500,000 shares outstanding each selling for $130. It is contemplating a 2-for-1 stock

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Since the total market value of the company is expected to remain constant after the s... View the full answer

Foundations of Financial Management

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