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The common stock of Fido Corporation was trading a...

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The common stock of Fido Corporation was trading at $45 per share on October 15, 2010. A year later, on October 15, 2011, it was trading at $80 per share. On this date, Fido's board of directors decided to split the company's common stock. a. If the company decides on a 2-for-1 split at what price would you expect the stock to trade immediately after the split goes in effect? b. If the company decides on a 4-for-1 split, at what price would you expect the stock to trade immediately after the split goes into effect? c. Why do you think Fido's board of directors decided to split the company's stock?,In your answer to part b of this question did you mean 4 for 1 split - could you recheck the answers to part a and part b.

 

Paper#1419 | Written in 18-Jul-2015

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