Question

Company X has 20M shares outstanding at $15 per share. Management has announced a 2 for 1 stock split. What would be the new market cap of the Company X?

Answer 1

$300 million

Step-by-step explanation:

Data provided in the question

Number of shares outstanding = 20 million

Value per share = $15

So, by considering the above information, the new market cap of the company X is

= Number of shares outstanding × Value per share

= 20 million × $15 per share

= $300 million

To determine the new market cap, we simply multiplied the number of outstanding shares with the per share so that the exact value could come