Before a two-for-one stock split,Len's stock was valued at $50 per share.What is his per-share value after the split?

Question

Quizplus · Accepted Answer

In a two-for-one stock split, each existing share is split into two new shares. Therefore, if Len's stock was valued at $50 per share and he undergoes a two-for-one stock split, he will have two shares for every one he had before, and the value of each share will be reduced by half.

Thus, after the split, Len's per-share value will be $25 (half of $50). Therefore, the correct answer is A) $25.

Before a Two-For-One Stock Split,Len's Stock Was Valued at $50