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. $28.43
B. $29.93
C. $31.50
D. $33.08
E. $34.73
Answer: C
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