Question: CONCEPTUAL PROBLEM (based on what you learned in FIN 31000). A firm with a total market value of $1 billion announces a 4-to-1 stock split.

CONCEPTUAL PROBLEM (based on what you learned in FIN 31000). A firm with a total market value of $1 billion announces a 4-to-1 stock split. Prior to the split, the stock was selling for $20 per share. What should be the post-split stock price per share? Also, how much is the total market value of the firm after the split?

Question options:

1)	$5; $1 billion

2)	$5; $4 billion

3)	$80; $1 billion

4)	$80; $4 billion

(option 2 is wrong)

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