Toombs Media Corp. recently completed a 3-for-1 stock split. Prior to the split, itsstock sold for $80 per share. The firm's total market value was unchanged by thesplit. Other things held constant, what is the best estimate of the stock's post-splitprice?$240$120$26.40$22.40$26.67

Stock split ratio = 3:1 price prior to stock split = $ 80 The firms market value was unchanged after…

Answered: Toombs Media Corp. recently completed a…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Toombs Media Corp. recently completed a 3-for-1 stock split. Prior to the split, its stock sold for $80 per share. The firm's total market value was unchanged by the split. Other things held constant, what is the best estimate of the stock's post-split price? $240 $120 $26.40 $22.40 $26.67