Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The common stock of Vicary, Inc. is selling for $78 a share. Currently, the all equity firm has a total market value of $6,825,000. How
The common stock of Vicary, Inc. is selling for $78 a share. Currently, the all equity firm has a total market value of $6,825,000. How many shares of stock will be outstanding if the firm does a 3-for-2 stock split?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
A stock split involves dividing the existing shares of a company into a greater number of shares thereby reducing the price per share In a 3for2 stock split for every 2 shares held by an investor they will receive 3 new shares Given that the stock of Vicary Inc is selling for 78 a share and the total market value of the company is 6825000 we can determine the number of shares currently outstanding Number of Shares Outstanding Total Market Value Price per Share Number of Shares Outstanding 6825000 78 Number of Shares Outstanding 87500 After the 3for2 stock split each shareholder will receive 3 new shares for every 2 shares they already hold This means that for every 2 shares the ...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
