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Heidi owns 720 shares of Boyd Enterprises, which is priced at $65.72 per share. The company plans a 3-for-1 stock split. How many shares will Heidi own and what will the share price be after the stock split?

Question

Heidi owns 720 shares of Boyd Enterprises, which is priced at $65.72 per share. The company plans a 3-for-1 stock split. How many shares will Heidi own and what will the share price be after the stock split?

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Solution

After a 3-for-1 stock split, Heidi will own three times the number of shares she currently owns. So, she will own 720 shares * 3 = 2160 shares.

The price per share will be divided by 3 after the split. So, the new price per share will be 65.72/3=65.72 / 3 = 21.91 per share.

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