Asked by Desmond Teddy on Jun 17, 2024
Verified
Zamfir Corporation has a current price of $75 per share. It has declared a 5 for 3 share split. Given this information, determine the share price after the split.
A) $125
B) $100
C) $45
D) $25
E) $15
Share Split
A business move where a company splits its current shares into additional ones to increase the shares' marketability.
Share Price
The current market price of a single share of a company's stock.
- Learn about the mechanics and financial repercussions of stock splits and their influence on market price per share.
Verified Answer
NH
Nikki HetzellJun 18, 2024
Final Answer :
C
Explanation :
In a 5 for 3 share split, for every 3 shares someone owns, they now have 5 shares. To find the new price per share, divide the old price by the ratio of the split (5/3). So, $75 divided by (5/3) equals $45.
Learning Objectives
- Learn about the mechanics and financial repercussions of stock splits and their influence on market price per share.