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Home Q & A Board Other Fields Homework Help Business Management
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stranahan stranahan
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7 years ago
Rough Rider Disposal Inc. is having a stock split. The current price is $57 per share, and you own 500 shares. The split is a one-and-one-half-shares-for-one share split. What is the expected per share price after the split? What is your wealth before and after the split? Based on empirical evidence , does the market value of outstanding shares (new price times new quantity) tend to increase or decrease on average when stocks split into a greater number (but lower priced) shares, as in this problem?
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Financial Management: Core Concepts

Financial Management: Core Concepts


Edition: 2nd
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Decrepit_Decrepit_
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7 years ago
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stranahan Author
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#2
7 years ago
Thank you very much for this. It's really helpful.
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