Question

Bento, Inc. had 500,000 shares of common stock outstanding before a stock split occurred, and 1,500,000 shares outstanding after the stock split. The stock split was a) 3-for-1 b) 2-for-5 c) 5-for-1 d) 1-for-5

Answer 1

a) 3-for-1

Step-by-step explanation:

No of shares before stock split = 500000

No of shares after stock split = 1500000

Ratio in which stock was split

= 1500000 / 500000

= 3/1

3-for-1 .