An investor owns some stock in? Harry\'s Pottery Inc. The stock recently underwe

Question

An investor owns some stock in? Harry's Pottery Inc. The stock recently underwent a 5?-for-4 stock split. If the stock was trading at ?$26.65 per share just before the? split, how much is each share most likely selling for after the? split? If the investor owned 300 shares of the stock before the? split, how many shares would she own? afterward? If the stock was trading at ?$26.65 per share just before the? split, then after the split each share most likely selling for?????????????$ nothing. ?(Round to the nearest? cent.)

Explanation / Answer

Selling Price of the share after the split = $21.32 per share

Selling Price of the share after the split = Share price before the split x [ Old shares / New Shares ]

= $26.65 x 4/5

= $21.32 per share

Number of shares after the split = 375 Shares

Number of shares after the split = Number of shares before the stock spilt x Stock spit ratio

= 300 Shares x 5/4

= 375 Shares

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