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Downie Foods Recently Completed a 4-For-1 Stock Split

Question 7

Multiple Choice

Downie Foods recently completed a 4-for-1 stock split.Prior to the split, its stock sold for $120 per share.If the firm's total market value increased by 5% as a result of increased liquidity caused by the split, what was the stock price following the split?


A) $28.43
B) $29.93
C) $31.50
D) $33.08
E) $34.73

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