Robinson's has 45,000 shares of stock outstanding with a par value of $1 per share and a market price of $56 a share. The balance sheet shows $45,000 in the common stock account, $470,000 in the paid in surplus account, and $440,000 in the retained earnings account. The firm just announced a 5-for-3 stock split. How many shares of stock will be outstanding after the split?
Robinson's has 45,000 shares of stock outstanding with a par value of $1 per share and a market price of $56 a share. The balance sheet shows $45,000 in the common stock account, $470,000 in the paid in surplus account, and $440,000 in the retained earnings account. The firm just announced a 5-for-3 stock split. How many shares of stock will be outstanding after the split?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Robinson's has 45,000 shares of stock outstanding with a par value of $1 per share and a market price of $56 a share. The
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