Polycorp wishes to make a threefor one stock split (each share will be replaced by three shares). The currentshare price is $8.13. What is the theoretical ex-split price? Are theshareholders better...

Polycarp wishes to make a three for one stock split (each share will be replaced by three
shares). The current share price is $8.13. What is the theoretical ex-split price? Are the
shareholders better off after the split, why or why not? No more than a short paragraph is
required for this answer.
Solutions
Current Share Price = $8.13
Stock Split = 3 for 1
A three for one stock split implies that for every share owned previously, now the owner will
be having three shares. Now suppose a...