in february, robbins and myers, inc. executed a 2 - for - 1 split. janine had 470 shares before the split…

in february, robbins and myers, inc. executed a 2 - for - 1 split. janine had 470 shares before the split. each share was worth $69.48.\na. how many shares did she hold after the split?\nb. what was the post - split price per share?\nc. show that the split was a monetary non - event for janine.

in february, robbins and myers, inc. executed a 2 - for - 1 split. janine had 470 shares before the split. each share was worth $69.48.\na. how many shares did she hold after the split?\nb. what was the post - split price per share?\nc. show that the split was a monetary non - event for janine.

Answer

Explanation:

Step1: Calculate post - split shares

Multiply pre - split shares by split ratio. $470\times2 = 940$

Step2: Calculate post - split price

Divide pre - split price by split ratio. $\frac{69.48}{2}=34.74$

Step3: Prove non - event

Calculate pre - split value: $470\times69.48 = 32655.6$ Calculate post - split value: $940\times34.74 = 32655.6$ Since pre - split value = post - split value, it's a non - event.

Answer:

a. 940 b. $34.74 c. Pre - split value: $470\times69.48 = 32655.6$, Post - split value: $940\times34.74 = 32655.6$. Since they are equal, the split was a monetary non - event for Janine.