What does this tell us about market efficiency

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Reference no: EM133264560

A company has just announced a 2-for-1 stock split, effective immediately. Prior to the split, the company had a market value of $10 billion with 200 million shares outstanding. a. Assuming that the split conveys no new information about the company, what is the value of the company, the number of shares outstanding, and price per share after the split?

b. If the actual market price immediately following the split is $17.00 per share, what does this tell us about market efficiency

Reference no: EM133264560

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