Ebeling Inc undergoes a 3 for 1 stock split If the companys

Ebeling Inc. undergoes a 3 for 1 stock split. If the company\'s stock trades for 156 dollars per share before the split and the value of the company does not change due to the split, what is Ebeling\'s new stock price?

Solution

Answer:

Company\'s stock value before stock split = $156

Stock Split = 3 for 1 stock

New stock price = $156/3 = $52

So, Ebeling\'s new stock price = $52.