The equity section of a firms balance sheet shows common stock of $70,000 with a par value of $.40 per share, additional paid-in capital of $435,000, and retained earnings of $1,260,000. How many shares will be outstanding after a five-for-two stock split?

Multiple Choice

• 437,500 shares

• 35,000 shares

• 3,156,250 shares

• 7,875,000 shares

• 505,000 shares