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Problem: S Company, which had 10,000 shares of common stock outstanding, declared a 3 for 1 stock split. Required: a) What will be the number of shares outstanding after the split? b) If the common stock had a market value of $90 per share before the split what would be an approximate market price per share after the split?

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Problem Details

S Company, which had 10,000 shares of common stock outstanding, declared a 3 for 1 stock split.

Required:

a) What will be the number of shares outstanding after the split?
b) If the common stock had a market value of $90 per share before the split what would be an approximate market price per share after the split?

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