JPix management is considering a stock split. JPix currently sells for $102 per share and a 3-for-1 stock split is contemplated. What will be the company's stock price following the stock split, assuming that the split has no effect on the total market value of JPix's equity? Round your answer to the nearest dollar.
3-for-1 stock split implies that for every 1 stock outstanding, 3 stocks would be outstanding post event.
But such event does not lead to any change in market value of the firm.
So,
Number of stocks pre-split * Share price post split = Number of stocks post-split * Share price post-split
1 * $102 = 3 * Share price post-split
Share price post split = $102/3 = $34
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