A corporation has 40,000 shares of $25 par value stock outstanding. If the corporation issues a 4-for-1 stock split, the number

Question

3 years ago

8

of shares outstanding after the split will be:

1 answer:

Olegator [25] · Answer 1 · 2022-08-10T06:53:02+03:00

Based on the information given the number of shares outstanding after the split will be: 160,000 shares.

Using this formula

Outstanding shares=Current shares outstanding × Number of the split

Where:

Current shares outstanding =40,000 shares

Number of the split =4

Let plug in the formula

Outstanding shares=40,000 shares×4

Outstanding shares=160,000 shares

Inconclusion the number of shares outstanding after the split will be: 160,000 shares.

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