Becker Financial Recently Declared a 2-For-1 Stock Split

question 39

Multiple Choice

Becker Financial recently declared a 2-for-1 stock split.Prior to the split,the stock sold for $80 per share.If the firm's total market value is unchanged by the split,what will the stock price be following the split?

• A)$36.10
• B)$38.00
• C)$40.00
• D)$42.00
• E)$44.10

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Definitions:

Tragedy of the Commons

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Legal rights to possess, use, and dispose of land, buildings, or goods owned by an individual or entity.

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