Before a 3-for-2 stock split, the shares outstanding were 60,000 shares at $15 par. After the split, what was the par value and number of shares? (Round any intermediary calculations to two decimal places, and your final answer to the nearest whole number.)

A) 90,000 shares and $23/share
B) 90,000 shares and $10/share
C) 40,000 shares and $23/share
D) 40,000 shares and $10/share


B) 90,000 shares and $10/share
Explanation: shares outstanding × 3/2 for shares; par value × 1.50 for par; ex: 60,000 × 3/2 = 90,000 shares; $15 / 1.50 = $10/share

Business

You might also like to view...

A(n) ____________________ accumulates detailed information regarding the cost of producing a product

Fill in the blank(s) with correct word

Business

Choose the correct word or words in parentheses. The drill team (was, were) invited to march in the parade

Business

Gross pay is the total amount of salary, wages, commissions, and bonuses earned by an employee during a pay period, after taxes or any other deductions

Indicate whether the statement is true or false

Business

A certificate of deposit is actually a loan by a depositor to a bank

Indicate whether the statement is true or false

Business