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18 July, 21:27

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?

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Answers (1)
  1. 18 July, 21:51
    0
    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
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