Question

Willey’s Grill & Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Southwest. Willey’s Grill & Restaurant, which had 335,000 shares of common stock outstanding, declared a 2-for-1 stock split. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Answer 1

a. The number of shares outstanding after the stock split by Willey’s Grill & Restaurant Corporation is 670,000 (335,000 x 2).

b. If the common stock had a market price of $510 per share before the stock split, the approximate market price per share after the split is $255 ($510/2).

What is a stock split?

A stock split is a way that a corporation increases the number of its shares by increasing or decreasing the number of shares outstanding.

When a stock split increases the number of outstanding shares, the market price reduces proportionately.

Question Completion:

a. What will be the number of shares outstanding after the split? Round your answer to the nearest whole number.

b. If the common stock had a market price of $510 per share before the stock split, what would be an approximate market price per share after the split? Round your answer to the nearest dollar.

Thus, the stock split increased the outstanding shares to 670,000 while reducing the market price to $255.

Learn more about stock splits at brainly.com/question/17153283

#SPJ1