A corporation has 50,000 shares of $25 par stock outstanding

Finance May 06, 2021

A corporation has 50,000 shares of $25 par stock outstanding. If the corporation issues a 3-for-1 stock split, the number of shares outstanding after the split will be

a)16,666 shares

b) 50,000 shares

c) 150,000 shares

d) 100,000 shares

Expert Solution

Computation of the number of shares outstanding after the split:-

Number of shares outstanding after split = Number of shares outstanding * 3-for-1 stock split

= 50,000 * 3

= 150,000 shares

Hence, the correct option is c) 150,000 shares

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