Question

Yesterday, Berryman Investments was selling for $145 per share. Today, the company completed a 7-for-2 stock split. If the total market value was unchanged by the split, what is the price of the stock today? Select the correct answer. a. $41.43 b. $44.19 c. $42.12 d. $43.50 e. $42.81

Answer 1

the price of the stock today is $41.43

Step-by-step explanation:

The computation of the price of the stock today is shown below:

= Selling price per share ÷ stock split ratio

where,

Selling price per share is $145

And, the stock split ratio is 7 for 2

Now place these values to the above formula

So, the price of the stock today is

= $145 ÷ 7 ÷ 2

= $41.43

Hence, the price of the stock today is $41.43

Therefore the correct option is a