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26 July, 18:08

Outstanding SharesWillis & Company has 20 million shares of $1 par value common stock outstanding. The company believes that its current market price of $100 per share is too high and decides to execute a 4-for-1 forward stock split to lower the price. How many shares will be outstanding following the stock split? What will be the new par value per share?

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  1. 26 July, 18:24
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    a. 80.000.000

    b. $0.25 per share

    Check the following calculations below.

    Explanation:

    According to the information provided in the exercise:

    a) Outstanding share after stock split = 20.000.000 * 4 = 80.000.000

    b) New par value per share = 1/4 = $0.25 per share
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