Urguhart has just declared a 4 for 3 stock split. If the pre-split price of common stock was $54 a share, what do you expect the post-split price will be?
A) $72.00
B) $36.18
C) $42.23
D) $40.50

Question

Quizplus · Accepted Answer

In a 4 for 3 stock split, for every 3 shares someone owns, they will now own 4 shares. To find the new price per share, divide the old price by the ratio of the split (4/3). So, $54 divided by (4/3) equals $40.50.

Urguhart Has Just Declared a 4 for 3 Stock Split