Question

"company has 300,000 shares of common stock outstanding that is currently selling at a price of $100 per share. The company has announced a 3-for-2 stock split."

Answer 1

Answer:

450,000 shares are outstanding after stock spilt.

Explanation:

Computing numbers of shares outstanding for company after stock spilt is as:

Number of shares outstanding = Number of Shares × Stock Spilt

where

Number of Shares are 300,000

Stock spilt is 3/ 2

Putting the values above:

= 300,000 × 3 / 2

= 450,000 Shares

Note: Determine the number of shares outstanding for the company after stock spilt. Is the requirement.