Question

The common stock of Fido Corporation was trading at S45 per share on October 15, 2010. A year later, on October 15, 2011, it was trading at S80 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 into effect?

b. If the company decides on a 4-for. I split. at that price would you expect the stock to trade immediately after the split goes into effect?

c. Wh do ou think Fido's board of directors decided to s lit the com pan 's stock?​

Answer 1

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Step-by-step explanation:

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