Question

Assume that you own 3,600 shares of $10 par value common stock and the company has a
4-for-1 stock split when the market price per share is $68.
How many shares of common stock will you own after the stock split?

Answer 1

Answer:

The number of shares of common stock own after the stock spilt is 14,400

Explanation:

The number of shares of common stock own after the stock spilt is computed with the formula as:

Number of common stock after stock spilt = Number of common stock before stock spilt × Stock spilt multiple

= 3,600 × 4 / 1

= 14,400 shares