The Meltzer Corporation Is Contemplating a 7-For-3 Stock Split

Multiple Choice

The Meltzer Corporation is contemplating a 7-for-3 stock split.The current stock price is $75.00 per share, and the firm believes that its total market value would increase by 5% as a result of the improved liquidity that it thinks would follow the split.What is the stock's expected price following the split?

A) $32.06
B) $33.75
C) $35.44
D) $37.21
E) $39.07