Question
The Retail Outlet has 6,000 shares of stock outstanding with a par value of $1.00 per share. The current market value of the firm is
The Retail Outlet has 6,000 shares of stock outstanding with a par value of $1.00 per share. The current market value of the firm is $420,000. The balance sheet shows the capital in excess of par account value of $136,000 and retained earnings of $234,000.
The company just announced a 2-for-1 stock split. How many shares of stock will be outstanding after the split?
a.3,000
b.6,000
c.9,000
d.12,000
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Get StartedRecommended Textbook for
Derivatives Markets
Authors: Robert McDonald
3rd Edition
978-9332536746, 9789332536746
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