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gayaneshka [121]
3 years ago
10

Before a three-for-one stock split, the shares outstanding were 5,000 shares at $12 par.

Business
1 answer:
Artemon [7]3 years ago
6 0

After the three is to one split, for every one old share, there will be three new shares.

So number of new shares = 5000*3 = 15,000 shares

Since the number of shares increased three fold, the price per share will decrease by three fold.

So the price per share after split = 12/3 =$4

So, after the split, there will be 15,000 shares at $4 per share

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