Wildcat Company is considering a 5-for-3 stock split. The current price is $57.00 per share, and...

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Question

Wildcat Company is considering a 5-for-3 stock split. The current price is $57.00 per share, and Wildcat believes that its to

Answer 1

Answer #1

Current Stock Price = $57

Stock Price after repricing due to liquidity effect = (1.075)(57) = $61.28

Stock Price after split = 61.28(3/5)

Stock Price after split = $36.77

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Answer 2

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