Camden Co. completed a 3-for-2 stock split. Immediately prior to the split, its

Question

Camden Co. completed a 3-for-2 stock split. Immediately prior to the split, its stock sold for $90 per share. The firm's total market value was unchanged by the split. Other things held constant, what is the best estimate of the stock's post-split price? None of the above $60 $45 $135 $30 Camden Co. completed a 3-for-2 stock split. Immediately prior to the split, its stock sold for $90 per share. The firm's total market value was unchanged by the split. Other things held constant, what is the best estimate of the stock's post-split price?

Explanation / Answer

Post-split price is equal to=$90/(3/2)

which is equal to

=$90/1.5

which is

=$60(B)

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