A firm’s stock price is $180 and it wants to lower the price to $60 to...
A firm’s stock price is $180 and it wants to lower the price to $60 to make it more affordable and express confidence to the market. What is the required stock split?
Homework Answers
The stock split = 180/ 60 = 3
This means that in order to decrease the price to $60 from $180 , we need to increase the number of stocks i.e. we need to do a stock split of 3 for 1. Meaning, we need to give 3 shares for 1 share and increase the number of shares to decrease the Price.
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A firm’s stock price is $180 and it wants to lower the price to
$60 to...
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