The pre-split market capitalization of BBQ corp. is $24,451,875.
Given that, BBQ Corp. had a 3:1 stock split ratio. Pre-split the company had 1.35 Million outstanding shares at a price of $72.45 per share.
What is the ratio?
The ratio is defined as the comparison of two quantities of the same units that indicates how much of one quantity is present in the other quantity.
Here, 3+1=4
Now, 1/4 × 1350000
= 337500 shares
So, capitalization is 337500×72.45
= $24,451,875
Therefore, the pre-split market capitalization of BBQ corp. is $24,451,875.