question archive The common stock of ABC Corporation was trading at $50 per share on October 15, 2018
The common stock of ABC Corporation was trading at $50 per share on October 15, 2018
Subject:AccountingPrice: Bought3
The common stock of ABC Corporation was trading at $50 per share on October 15, 2018. A year later, on October 15, 2019, it was trading at $80 per share. On this date, ABC's board of directors decided to split the company's common stock.
If the company decides on a 4-for-1 split, at what price would you expect the stock to trade immediately after the split goes into effect?
Single choice.
a $25
b $40
c $20
d None of these
