Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 11 - Reporting and Analyzing Stockholders' Equity - Questions - Page 603: 18

Answer

The effect of stock split is that the number of shares will increase proportionately. In the given case 10,000 shares of \$15 each will become 30,000 shares of $5 each. (3-for-1)

Work Step by Step

The approximate market price per share will be 40 dollars per share (120 dollars divided intro 3)
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