Before the announcement of a three-for-one stock split, the selling price for a share of stock in Olympia Oil Refineries was $150 per share. Immediately after the stock split, the probable price per share is:

Question

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A three-for-one stock split means that each shareholder will receive three new shares for every one share they own. This would increase the total number of shares in the market, but not the value of the company. Therefore, the price per share would decrease proportionally. In this case, the new price would be $50 per share ($150/3).

Before the Announcement of a Three-For-One Stock Split, the Selling