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-2 stock split. How many shares of stock will be outstanding after the split

Answer 1

312,500

Step-by-step explanation:

A stock split increases the number of outstanding shares and decreases the value of shares.

A stock split is a form of returns given to shareholders in a corporation.

In a 5-for-2 split, for every 2 shares owned, shares would increase by 5 .

(125,000 × 5 ) / 2 = 312,500

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