Let's break down the problem step by step: ## **Step 1: Understanding a 2-for-1 Stock Split** - A **2-for-1 stock split** means that for every 1 share currently owned, the investor will receive 2 shares after the split. - However, the **total value of the holdings does not change** immediately after the split; only the number of shares and the price per share change. --- ## **Step 2: Calculating the New Number of Shares** - **Original number of shares:** 8,000 - **Split ratio:** 2-for-1 **New number of shares = Original number of shares × 2** \[ \text{New number of shares} = 8,000 \times 2 = 16,000 \] --- ## **Step 3: Calculating the New Price Per Share** - **Original price per share:** $56.00 In a 2-for-1 split, the price per share will be halved (since the value is now spread over twice as many shares): \[ \text{New price per share} = \frac{\$56.00}{2} = \$28.00 \] --- ## **Step 4: Calculating the Total Value After the Split** - **Total value before the split:** \( 8,000 \) shares × $56 = **$448,000** - **Total value after the split:** \( 16,000 \) shares × $28 = **$448,000** So, the **total value remains the same**. --- ## **Final Answers** - **Shares after split:** **16,000** - **Price per share after split:** **$28.00** - **Total value of holdings:** **$448,000** --- ### **Summary Table** | Before Split | After Split | |----------------|---------------| | 8,000 shares | 16,000 shares | | $56/share | $28/share | | $448,000 value | $448,000 value| --- **Explanation:** A 2-for-1 stock split doubles the number of shares and halves the price per share, but the total value of the investment remains unchanged.