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    Stock Split

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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?

    © BrainMass Inc. brainmass.com October 1, 2020, 5:11 pm ad1c9bdddf
    https://brainmass.com/business/dividends-stock-repurchase-and-policy/stock-price-following-stock-split-29543

    Solution Preview

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

    Thus suppose there ...

    Solution Summary

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

    $2.19

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