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irina [24]
3 years ago
5

Robinson's has 30,000 shares of stock outstanding with a par value of $1 per share and a market price of $44 a share. The balanc

e sheet shows $30,000 in the common stock account, $440,000 in the paid in surplus account, and $380,000 in the retained earnings account. The firm just announced a 5-for-3 stock split. How many shares of stock will be outstanding after the split
Business
1 answer:
Katyanochek1 [597]3 years ago
8 0

Answer:

The question has the following multiple choices:

Multiple Choice  

18,000 shares

50,000 shares

120,000 shares

32,000 shares  

49,500 shares

The correct option is 50,000 shares as shown below

Explanation:

Number of shares after stock-split=number of shares before stock split*stock split ratio

number of shares before stock split=30,000

stock-split ratio is 5/3

Number of shares after stock-split=30,000*5/3

                                                         =50,000 shares

Stock-split is an approach where a company further split its existing shares into multiples of shares in order to make the share more affordable to investors, even though the number of shares increases with a stock-split,but the actual monetary value of the shares remains the same.

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Ten years ago, Ginny inherited $50,000 from her grandmother. She decided to invest all of this money in GE stock. Suppose she de
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$14,500

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4 years ago
Seahorse Incorporated, which only has one product, has provided the following data concerning its most recent month of operation
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Explanation:

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John Smith, one of three managers at BSG Labs, drafted a policy that would allow his department to do more testing in his lab. T
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