finance/Business

[Khole]

I really need some help on this one this is as far as I got. I don't know what to do next.

Nistelroy Communications recently completed a 3-for-1 stock split. Prior to the split, its stock price was $120 per share. The firm's total market value increased by 5% as a result of the split. What was the price of the company’s stock following the stock split?

THIS IS AS FAR AS I GOT PLEASE HELP
Solution:
DPS after Split = $120
= $120(3)=$360

 

[Denis]

Not everybody is familiar with stocks and the likes.
This is a math site. I hope someone here can help...

 

[matt71]

If it's a 3-for-1 stock split, that means you multiply your shares by 3. So I suppose to get the new price per share, you just multiply 120 X 3. If you were calculating the total market value, you would need to know the total number of shares, in which case you multiply the new cost per share by that number. Then you would also be able to calculate the market value before the split by multiplying that number by 0.95 (to subtract 5%). I hope this helps.