Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

Exercise 39

The common stock of Fido Corporation was trading at $45 per share on October 15, 2014. year later, on October 15, 2015, it was trading at $80 per share.n this date, Fido's board of directors decided to split the company's common stock.
a.f the company decides on a 2-for-1 split, at what price would you expect the stock to trade immediately after the split goes into effect
b.f 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
c.hy do you think Fido's board of directors decided to split the company's stock