Joe Boylan purchased 600 common shares of Standard Cartons Inc. at the start of the year for $140 per share. He went on vacation in July and on his return was surprised to see that the shares were now trading at $59 each. When he called his broker, he was notified that the company had a 5:2 stock split just one day earlier. Assume that once the stock split occurred, there was no new information which came to the market to change the share price. The value of Joe's portfolio just before the stock split was ?

Answer rating: 100% (QA)

Before the stock split Joe owned 600 shares at 140 per share To fin... View the full answer