(a) A company has 100,000 shares of $1 par value common stock outstanding with a current market price of $100 per share. If the corporation issues a 2-for-1 stock split, what will be the approximate market price of the stock after the stock split?
(a) A company has 100,000 shares of $1 par value common stock outstanding with a
current market price of $100 per share. If the corporation issues a 2-for-1 stock
split, what will be the approximate market price of the stock after the stock split?
(b) What does the balance of
“Since you have posted multiple questions, we will provide the solution only to the first question as per our Q&A guidelines. Please repost the remaining questions separately.”.
A stock split is a corporate action in which a company increases the number of its outstanding shares by issuing more shares to its existing shareholders. The purpose of a stock split is to make the shares more affordable and accessible to a larger number of investors, by reducing the price per share.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
