Whited Products Recently Completed a 4-For-1 Stock Split

question 52

Multiple Choice

Whited Products recently completed a 4-for-1 stock split. Prior to the split, its stock sold for $120 per share. If the firm's total market value increased by 5% as a result of increased liquidity caused by the split, what was the stock price following the split?

• A) $28.43
• B) $29.93
• C) $31.50
• D) $33.08