AA is a pharmaceutical company and plans to adopt a stock splits by giving 2 stocks for 1 existing stocks The current stock price per share is $50 The company’s managers believe the total market value would increase by 10% This is because of the expected improvement in companies’ liquidity that will follow the company’s plan Find the stock’s expected price immediately after the stock split. a- Less than $25.00 b- [$25.00,$26.50] c- [$26.5,$28.50] d- More than $28.50
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