13-11 Effect of Stock Split Copper Grill Restaurant Corporation wholesales ovens

Question

13-11 Effect of Stock Split

Copper Grill Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Southwest. Copper Grill Restaurant Corporation, which had 72,000 shares of common stock outstanding, declared a 3-for-1 stock split.

a. What will be the number of shares outstanding after the split?
___________ shares

b. If the common stock had a market price of $180 per share before the stock split, what would be an approximate market price per share after the split?
$_________ per share

Explanation / Answer

a Number of shares outstanding after the split = 72000*3= 216000 b Market price per share after the split = 180/3 = $60

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.