PLEASE HELP!!! WILL MEDAL!!
Jim owns stock in Gamma Vision Inc. That company announces that it will split its stock with three new shares per two old shares. Jim currently owns 400 shares valued at $25 each. How many shares will he have after the split and how much will each be worth?

600 shares worth $37.50 each
400 shares worth $16.67 each
600 shares worth $16.67 each
200 shares worth $37.50 each

Question

PLEASE HELP!!! WILL MEDAL!!
Jim owns stock in Gamma Vision Inc. That company announces that it will split its stock with three new shares per two old shares. Jim currently owns 400 shares valued at $25 each. How many shares will he have after the split and how much will each be worth?

600 shares worth $37.50 each
400 shares worth $16.67 each
600 shares worth $16.67 each
200 shares worth $37.50 each

smoore777 · Answer

What do you think the answer is?

anonymous · Answer

i have absolutely no clue..... maybe c?

smoore777 · Answer

C is right.

smoore777 · Answer

Because 400 is 2/3 of 600, and would decrease the price by 2/3 :)