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Kipish [7]
3 years ago
14

Ibram Corporation had 200,000 shares of $1 par value common stock outstanding. If Ibram announces a 4-for-1 stock split, the par

value and number of shares outstanding after the stock split would be:
Business
1 answer:
LenaWriter [7]3 years ago
3 0

Answer:

Post split Shares: 800,000

Post split par value: $0.25

Explanation:

Stock split seeks to increase the number of shares available for trading on the exchange thus increasing the liquidity. Stock split of 4 for 1 increases the shares by 4 times e.g. every holder of 1 share will receive total of 4 new shares. Thus the shares will increase to 4 times: (200,000 * 4) = 800,000.

Post split share price is calculated by dividing par value to the proposed split.

($1 / 4) = $0.25 per share.

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Explanation:

Please note  the analysis of each transaction done under the heading "particulars".

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7nadin3 [17]

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3 0
2 years ago
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6 0
3 years ago
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Answer:

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Explanation:

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We simply applied the above formula

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