Ask Question
BusinessBusiness
16 November, 05:36

Gorton Corporation has 30,000 shares of $10 par value common stock outstanding, when it announces a 2-for-1 stock split. Before the split, the stock had a market price of $120 per share. After the split, how many shares of stock will be outstanding? Common Stock Outstanding? What will be the approximate market price per share?

+2
Answers (1)
  1. 16 November, 05:39
    0
    Common Stock Outstanding Shares=60,000 shares

    Market Price Per share = $60

    Explanation:

    2-for-1 stock split means that every shareholder will receive additional common stock on each share.

    Given dа ta:

    Number of shares=30,000 shares

    Market price per share=$120

    Required:

    Common Stock Outstanding=?

    Market Price per share=?

    Solution:

    After split, Common Stock Outstanding Shares=30,000 shares*2

    Common Stock Outstanding Shares=60,000 shares

    Due to the split the price of share will become half.

    Market Price per share=$120/2

    Market Price Per share = $60
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Gorton Corporation has 30,000 shares of $10 par value common stock outstanding, when it announces a 2-for-1 stock split. Before the split, ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
A firm uses its weighted average cost of capital to evaluate the proposed projects for all of its varying divisions. By doing so, the firm:A. Automatically gives preferential treatment in the allocation of funds to its riskiest divisionB.
Answers (1)
Since the fall of 2008, millions of americans have lost jobs due to the economic meltdown. a recent study shows that unemployment has not impacted white-collar and blue-collar workers equally (newsweek, april 20, 2009).
Answers (1)
Marigold Corp. has the following inventory dа ta: Nov. 1 Inventory 23 units @ $4.70 each 8 Purchase 94 units @ $5.05 each 17 Purchase 47 units @ $4.90 each 25 Purchase 70 units @ $5.
Answers (1)
Wims, inc., has current assets of $6,000, net fixed assets of $25,100, current liabilities of $4,950, and long-term debt of $12,000. a. What is the value of the shareholders' eq
Answers (1)
Using the following information, prepare a bank reconciliation for Cullumber Company for May 31, 2022. a. The bank statement balance is $9,100. b. The cash account balance is $6,830. c. Outstanding checks totaled $2,460. d.
Answers (1)
New Questions in Business
Thirty-two new employees from Market Enterprises are attending orientation, receiving information about company policies, and filling out various forms. These employees comprise a group. 1. True2. False
Answers (1)
Which of the following statements is true? a. The required return on a firm's common stock is, in theory, determined solely by its market risk.
Answers (1)
Jack is preparing for a party and makes potato salad, but he does not realize that the salad contains one escherichia coli bacterium. he accidentally leaves the salad out of the refrigerator for 2 hours. if e.
Answers (1)
You feel that you will need $2.8 million in your retirement account and when you reach that amount, you plan to retire. You feel you can earn an APR of 10.8 percent compounded monthly and plan to save $395 per month until you reach your goal.
Answers (1)
Golden Eagle Company prepares monthly financial statements for its bank. The November 30 and December 31 adjusted trial balances include the following account information:30-Nov 31-Decdebit credit debit creditsupplies $ 2,000 $ 3,500 prepaid
Answers (1)
Home » Business » Gorton Corporation has 30,000 shares of $10 par value common stock outstanding, when it announces a 2-for-1 stock split. Before the split, the stock had a market price of $120 per share.
Sign Up Forgot Password?