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Downie Foods recently completed a 4-for-1 stock split. Prior to the split, its stock sold for $120 per
share. If the firm's total market value increased by 5% as a result of increased liquidity caused by
the split, what was the stock price following the split? a. $34.73 b. $31.50 c. $33.08 d. $28.43 e.
$29.93

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