Answer:
16,000 shares will be outstanding.
Explanation:
Given;
Number of outstanding stocks = 12,000
par value per share = $ 1
Market price per share = $ 39
stock split = 4 for 3 i.e the stockholders will receive 4 shares if they are having 3 shares.
or by using the concept of unitary method
3 existing shares = 4 shares will be issued.
or
1 existing share = ( 4/3 ) shares will be issued.
thus,
for 12,000 existing shares = (4 / 3 ) × 12,000 shares will be issued.
or
12,000 existing shares = 16,000 shares will be issued.
hence,
16,000 shares will be outstanding.
