A corporation has 43,671 shares of $32 par stock outstanding that has a current market value of $300 per share. If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately
A corporation has 43,671 shares of $32 par stock outstanding that has a current market value of $300 per share. If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately
Market capitalization refers as the total valuation of a company constructed on its present share prices and the total number of outstanding share. It is equal to the share price that is multiplied by number of shares outstanding.
Stock split is defined as the situation when a company divides its present shares into multiple new shares in order to uplift its stock's liquidity. Such splitting of shares does not add any real value in the total value of the existing shares , it only increases the number of outstanding shares by a particular ratio.
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