Question

in february,Robbins and Myers,Inc.executed a 2-for-1 split.janine had 470 shares before the spilit.each share was worth $69.48. A.how many shares did she hold after the split? B.what was the post-split price per share? C.show that the split was a monetary non-event for janine?

Answer 1

Before the split: 470 shares
After the 2-for-1 split: 470 * 2 = 940 shares

Post-split price per share = $69.48 * 1/2 = $34.74

Before the split she owned 470 shares at $69.48 per share.
The total value = $69.48 x 470 = $32,655.60

After the split she owned 940 shares at $34.74 per share.
The total value = $34.74 x 940 = $32,655.60

So the value she owned did not change and the split is a monetary non-event for Janine.