VGG, Inc Declares a 2-For-5 Stock Split

question 78

Multiple Choice

VGG, Inc. declares a 2-for-5 stock split. The stock currently sells for $4 a share. A shareholder who owned 1000 shares of VGG stock prior to the split will now own

• A) 400 shares valued at about $10.00 a share.
• B) 440 shares valued at about $1.60 a share.
• C) 2500 shares valued at about $1.60 a share.
• D) 250 shares valued at about $11.60 a share.