Willis & Company has 20 million shares of $1 par value common stock outstanding. The company believes that its current market price of $100 per share is too high and decides to execute a 4-for-1 forward stock split to lower the price. There are 80 million outstanding shares following the stock split What will be the new par value per share?
Willis & Company has 20 million shares of $1 par value common stock outstanding. The company believes that its current market price of $100 per share is too high and decides to execute a 4-for-1 forward stock split to lower the price. There are 80 million outstanding shares following the stock split What will be the new par value per share?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Willis & Company has 20 million shares of $1 par value common stock outstanding. The company believes that its current market price of $100 per share is too high and decides to execute a 4-for-1 forward stock split to lower the price.
There are 80 million outstanding shares following the stock split
What will be the new par value per share?
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