lim management is considering a stock split lim currently se

lim management is considering a stock split. lim currently sells for $65 per share, and a 3-for-2 stock split is contemplated. What will be the company\'s stock price following the stock split assuming that the split has no effect on the total market value of lim equity? Round your answer to the nearest cent.

Solution

The company would need to issue a 3-for-2 stock split which means that for two of currently issued common shares the company shall issue 3 shares. It will increase the total number of shares issued,,and a market price of $43.333($65*0.67).per share.

It will not affect balance in any of the accounts.