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Question
Downie Foods 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
e. $34.73
Answer
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