Problem:
Mid-State BankCorp recently declared a 7-for-2 stock split. Prior to the split, the stock sold for $60 per share.
Required:
Question: If the firm's total market value is unchanged by the split, what will the stock price be following the split?
- $20.40
- $17.14
- $14.74
- $16.80
- $13.54
Note: Show supporting computations in good form.