Wednesday, 2 October 2019

Assume the company announced a 2-for-1 stock split. Before the split, the company’s total

Assume the company announced a 2-for-1 stock split. Before the split, the company’s total capitalization was $4 million, after tax income was $1.6 million and the company had 1 million shares outstanding. What was the company’s after tax income after the split?

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