Problem 14-05 Stock Split JPix management is considering a stock split. JPix currently sells for $80 per share and a 3-for-2 stock split is contemplated. What will be the company's stock price following the stock split, assuming that the split has no effect on the total market value of JPix's equity

$53.33

Explanation:

The computation of the stock price is shown below;

= Selling price per share × stock split ratio

where,

Selling price per share is $80 per share

And, the stock split ratio is 2 ÷ 3

Now placing these values to the above formula

So, the stock price is

= $80 per share × 2 ÷ 3

= $53.33

We simply applied the above formula so that the company stock price could come

answer; consideration;