Toombs Media Corp.recently completed a 3-for-1 stock split.Prior to the split,its stock sold for $90 per share.The firm's total market value was unchanged by the split.Other things held constant,what is the best estimate of the stock's post-split price?
A)$30.00
B)$31.50
C)$33.08
D)$34.73
E)$36.47

Question

Quizplus · Accepted Answer

In a 3-for-1 stock split, each share is divided into three shares, reducing the price per share by a third. Therefore, the post-split price is $90 / 3 = $30.00.