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CAD CoIs Considering a 10-For-4 Stock Split

question 38

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CAD Co.is considering a 10-for-4 stock split.The current stock price is $57.00 per share,and the firm believes that its total market value would increase by 3% as a result of the improved liquidity that it thinks would follow the split.What is the stock's expected price following the split?


Definitions:

Carpentry Work

The craft or activity of cutting, shaping, and installing wood for buildings, furniture, or other structures.

Market Equilibrium

A condition or state in which market supply equals market demand, meaning that prices are stable and the quantity of goods supplied exactly matches the quantity demanded.

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