Question

Jayne Corporation has 10,000 shares of $15 par value common stock outstanding when it announces a 3-for-1 split. Before the split, the stock had a market price of $120 per share. After the split, how many shares of stock will be outstanding, and what will be the approximate market price per share

Answer 1

A. 30,000shares

B. $40

Step-by-step explanation:

Calculation for how many shares of stock will be outstanding and what will be the approximate market price per share

A. Calculation for how many shares of stock will be outstanding

Outstanding stock = 10,000 shares × 3

Outstanding stock = 30,000shares

Therefore how many shares of stock will be outstanding is 30,000shares

B.Calculation for what will be the approximate market price per share

Market price per share= ($120 ÷ 3)

Market price per share=_40

Therefore what will be the approximate market price per share is $40