Question

The Tinslow Co. has 125,000 shares of stock outstanding at a market price of $93 a share. The company has just announced a 5-for-3 stock split. How many shares of stock will be outstanding after the split

Answer 1

Total shares outstanding = 208,333 units

Step-by-step explanation:

A stock split occurs where a company increases the the total unit of its existing shares by dividing them . It does this to achieve a cheaper nominal price of per unit of share without increasing the total nominal value

Total shares outstanding = 5/3× 125,000= 208,333.

Total shares outstanding = 208,333 units