a stock split increases the number of authorized issued and outstanding shares of stock coupled with a proportionate reduction i

Question

BARSIC [14]

3 years ago

12

a stock split increases the number of authorized issued and outstanding shares of stock coupled with a proportionate reduction i

n the

Business

1 answer:

Fittoniya [83] · Answer 1 · 2022-06-23T02:04:25+03:00

Answer:

stock price

earning per share

dividends per share

Explanation:

A stock split is when a company increases the number of its shares outstanding.

for example if a company has 4 million shares outstanding at a price of $20, earning per share is $1 and dividend per share is $0.50. this company announces a 2 for 1 split :

the number of outstanding shares becomes 2 x 4 million = 8 million

stock price becomes = $40 / 2 =$20

earning per share = $1 / 2 = $0.50

dividend per share = $0.5 / 2 = $0.25