I don't know why I got this wrong ### Effect of Stock SplitCopper Grill Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Southwest. Copper Grill Restaurant Corporation, which had 30,000 shares of common stock outstanding, declared a 3-for-1 stock split.**a. What will be the number of shares outstanding after the split?**The answer provided is incorrect. Instead of 10,000 shares, the correct calculation should be: \[ 30,000 \text{ shares} \times 3 = 90,000 \text{ shares} \]**b. If the common stock had a market price of $96 per share before the stock split, what would be an approximate market price per share after the split?**The answer provided is incorrect. Instead of $960,000 per share, the correct calculation should be: \[ \frac{96}{3} = 32 \text{ dollars per share} \]Note: A detailed explanation of the stock split process is important for understanding why the number of shares increases and the market price per share decreases proportionally.

Number of shares outstanding after split = Number of shares outstanding before split x Split ratio

Copper Grill Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Southwest. Copper Grill Restaurant Corporation, which had 30,000 shares of common stock outstanding, declared a 3-for-1 stock split. a. What will be the number of shares outstanding after the split? 10,000 X shares b. If the common stock had a market price of $96 per share before the stock split, what would be an approximate market price per share after the split? $ 960,000 X per share

Copper Grill Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Southwest. Copper Grill Restaurant Corporation, which had 30,000 shares of common stock outstanding, declared a 3-for-1 stock split. a. What will be the number of shares outstanding after the split? 10,000 X shares b. If the common stock had a market price of $96 per share before the stock split, what would be an approximate market price per share after the split? $ 960,000 X per share

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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