Starboard Corp has 750,000 authorized shares of $2 par value common stock, with 200,000 shares issued and 110,000 shares outstanding with a total current market value of $150,000. You are the owner of 12% of the outstanding stock. OA OC OD OE Which ONE statement best describes what happens when Starboard Corp executes a 3-for-1 forward stock split? A. You will own 36% of the company's stock after the split. B. Your ownership is worth $450,000 after the split. C. You return your original shares to the company, and receive 39,600 new shares in exchange. D. You receive 180,000 (i.e. 500,000 12% = 60,000 3 additional shares of stock. • E. None of the answers are correct.
Starboard Corp has 750,000 authorized shares of $2 par value common stock, with 200,000 shares issued and 110,000 shares outstanding with a total current market value of $150,000. You are the owner of 12% of the outstanding stock. OA OC OD OE Which ONE statement best describes what happens when Starboard Corp executes a 3-for-1 forward stock split? A. You will own 36% of the company's stock after the split. B. Your ownership is worth $450,000 after the split. C. You return your original shares to the company, and receive 39,600 new shares in exchange. D. You receive 180,000 (i.e. 500,000 12% = 60,000 3 additional shares of stock. • E. None of the answers are correct.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A3
Transcribed Image Text:Starboard Corp has 750,000 authorized shares of $2 par value common stock, with 200,000 shares issued
and 110,000 shares outstanding with a total current market value of $150,000. You are the owner of 12%
of the outstanding stock.
OA
OC
OD
OE
Which ONE statement best describes what happens when Starboard Corp executes a 3-for-1
forward stock split?
A. You will own 36% of the company's stock after the split.
B. Your ownership is worth $450,000 after the split.
C. You return your original shares to the company, and receive 39,600 new shares in exchange.
D. You receive 180,000 (i.e. 500,000 12 % = 60,000 additional shares of stock.
E. None of the answers are correct.
.
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