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Gamma Medical's stock trades at $90 a share. The company is contemplating a 3-for-2 stock split. Assuming that the stocks split will have no effect on the total market value of its equity, what will be the company's stock price following the stock split?

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Solution Summary

The solution calculates a company's stock price following the stock split.

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3 for 2= One additional share for every two shares held (multiply number by 1.5 for new total).

Thus suppose there ...

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