Vito owned 120 shares of a stock before the corporation instituted a 5-for-3 split.Before the split,the stock was selling at $16 a share.Vito now has 200 shares of the stock that is worth about $26.67 each.

Question

Quizplus · Accepted Answer

A 5-for-3 stock split means Vito would have 200 shares, but the price per share would decrease, not increase. The total value of the shares remains the same, so the price per share should be $9.60, not $26.67.

Vito Owned 120 Shares of a Stock Before the Corporation