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Your firm's stock price is currently $710. Your firm has decided to do a 5 for...

Your firm's stock price is currently $710. Your firm has decided to do a 5 for 1, stock split. Assuming that there is no information impact on the announcement day, after the split is completed the stock price will be?

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Answer #1

The firm has chosen to do a 5 for 1, stock split, Which indicates 5 shares will be given for each share owned by a shareholder.

It also given that there is no information impact on the announcement day.

The firm's stock price is currently $710.

After the split is performed the stock price will be diminished by 5 times due to the increase in the number of shares.

Consequently the stock price of the firm will be $710 / 5 = $142

The firm's stock price after the split will be $142.

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