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Emergency Medical's stock trades at $115 a share. The company is contemplating a 3-for-1 stock split....

Emergency Medical's stock trades at $115 a share. The company is contemplating a 3-for-1 stock split. Assuming that the stock split will have no effect on the market value of its equity, what will be the company's stock price following the stock split? Round your answer to the nearest cent.

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Answer #1

Number of shares will increase and stock price decrease following the split.

Hence stock price after the split=$115/3

which is equal to

=$38.33(Approx).

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