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Question
Kelly owns 10,000 shares in McCormick Spices, which currently has 500,000 shares outstanding. The stock sells for $86 on the open market. McCormick's management has decided on a two-for-one split.a. Will Kelly's financial position change after the split, assuming that the stock's price will fall proportionately?
Trevor Corporation - Stock Split
Market price $86.00
Split multiple 2
Shares outstanding 500,000
b. Assuming only a 35% decrease in the stock price, what will be Kelly's value after the split?
Answer
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