LOG,Inc.currently has 329,000 shares of stock outstanding that sell for $62 per share.Assuming no market imperfections or tax effects exist,what will be the share price after LOG implements a 7-for-3 stock split?

Question

Quizplus · Accepted Answer

The correct answer is A because after a 7-for-3 stock split, the number of shares outstanding will increase by a factor of 7/3, while the price per share will decrease by the same factor. Therefore, the new share price will be $62 * 3/7 = $26.57.

LOG,Inccurrently Has 329,000 Shares of Stock Outstanding That Sell for $62