What is the theoretical price of the new shares

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Reference no: EM132046905

A company whose shares are currently trading at $3.60 proposes to have a 25% split; that is, four new shares for one existing share. At the commencement of the next business day, a dividend of 25 cents is paid on existing shares, followed immediately by the share split. What is the theoretical price of the new shares?

Reference no: EM132046905

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