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Tangshan Mining has 100,000 shares outstanding and just declared a 2-for-1 stock split. Before the announcement,...

Tangshan Mining has 100,000 shares outstanding and just declared a 2-for-1 stock split. Before the announcement, the firm's shares were trading at $50.00 per share. After the stock dividend, the firm's shares should trade at ________ per share.

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Answer #1

Answer : $ 25.00

Stock Splitis the activity to split the stock into predefined number of Shares. After stock Split the Number of Stock will increase But outstanding Stock Value will remains the same.

Above Problem stock split is one Stockin to two stock

1 to 2 split

Stock Trade at @ $50.00 per share Before Split

After Split Stock will trade at = 50.00/ 2 = $ 25.00 Per share

After stock dividend also the Stokc will rade at $25.00

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