On January 1, 2021 Warner Corpporation has $,000 common shares outstanding

Finance Apr 01, 2021

On January 1, 2021 Warner Corpporation has $,000 common shares outstanding. On Feb 15, 2021 the board of directors declares a 4-for-1 stock split. How many total common shares will be outstanding after the stock split is paid?

Ebter as a whole number.

Expert Solution

Computation of Total Common Shares outstanding after the Stock split is paid:

Number of Shares = 1,000

Stock Split ( 4 for 1) = 1000 common shares * 4 = 4,000 common shares

So, 4,000 common shares will be outstanding after stock split.

Note: As there is dollar sign instead of number. So, I have assumed there are 1,000 common shares.

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