Many OPTIONS 10,000 shares of the ordinary stock of the Travis Company have a P10 par value. The stock splits two for one. Prior to the split, the stock's market price was P16. What will the share price on the market be just after the stock split? a. P4 b. P6 c. P8 d. P10 e. None of the above

Many OPTIONS 10,000 shares of the ordinary stock of the Travis Company have a P10 par value. The stock splits two for one. Prior to the split, the stock's market price was P16. What will the share price on the market be just after the stock split? a. P4 b. P6 c. P8 d. P10 e. None of the above

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter15: Distributions To Shareholders: Dividends And Repurchases

Section: Chapter Questions

Problem 7P: Stock Split Suppose you own 2,000 common shares of Laurence Incorporated. The EPS is $10.00, the DPS...

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Question

Many OPTIONS
10,000 shares of the ordinary stock of the Travis Company have a P10 par value.
The stock splits two for one.
Prior to the split, the stock's market price was P16.
What will the share price on the market be just after the stock split? a. P4
b. P6
c. P8
d. P10
e. None of the above

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