Answered

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On june 5th,CIGNA instituted a 3-for-1 stock split. Before the split,CIGNA had 200 million shares with a price of $168 per share. A. How many shares were outstanding after the split. B. What was the post-split price per share?

Sagot :

The number of shares outstanding after the split is 600 million shares.

The post-split price per share is $56.

What is a stock split?

A stock split is when a company increases the number of its shares outstanding. It is done when the company perceives that its shares are overpriced.

The number of shares outstanding increases by the number of stock split.

the number of outstanding shares becomes 3 x 200 million = 600 million

The stock price decreases by the number of stock split.

stock price becomes = $168 / 3 =$56

To learn more about stock splits, please check: https://brainly.com/question/20377743

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