Question

The Peanut Shack has 6,000 shares of stock outstanding with a par value of $1 per share. The current market value of the firm is $145,600. The company just announced a 3-for-2 stock split. What will the market price per share be after the split?

Answer 1

The market price per share be after the split will be $16.18

Step-by-step explanation:

shares outstanding after stock split = 6000*3/2

= 9,000

market price per share = 145,600/9000

= $16.18

Therefore, The market price per share be after the split will be $16.18