Question: Answer this question: If a company declares a 2 for 1 stock split when its stock was trading for $40 just prior to the announcement

Answer this question: If a company declares a 2 for 1 stock split when its stock was trading for $40 just prior to the announcement and it has 2 million shares outstanding, what will the theoretical market price of the stock be just after the stock split? Are stockholders better off? *I know that there are a lot of answers for this question, but if you can answer this in your own interpretation I would really appreciate it. Thank you!

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