Ask Question
18 December, 13:40

Nevada Corporation has 30,000 shares of $25 par stock outstanding that has a current market value of $120. If the corporation issues a 5-for-1 stock split, the number of shares outstanding will be

+1
Answers (1)
  1. 18 December, 13:42
    0
    150,000 shares

    Explanation:

    Nevada currently has 30,000 shares and if it issues a 5 for 1 stock split, it means that it will issue 4 new shares per every outstanding share. The total number of shares should increase to 30,000 x 5 = 150,000 shares. The price of current outstanding shares should be divided equally by 5 = $120 / 5 = $24 per share.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Nevada Corporation has 30,000 shares of $25 par stock outstanding that has a current market value of $120. If the corporation issues a ...” 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