Question: Grullon Co. is considering a 9-for-5 stock split. The current stock price is $87.50 per share, and the firm believes that its total market value

Grullon Co. is considering a 9-for-5 stock split. The current stock price is $87.50 per share, and the firm believes that its total market value would increase by 3% as a result of the improved liquidity that should follow the split. What is the stock's expected price following the split?

a. $50.07 b. $41.06 c. $55.58 d. $51.07 e. $37.55

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