Question

A corporation has 44,904 shares of $26 par value stock outstanding that has a current market value of $238 per share. If the corporation issues a 5-for-1 stock split, determine the number of shares outstanding. Select the correct answer. 583,752 8,981 224,520 44,904

Answer 1

Answer: 224,520

Step-by-step explanation:

From the question, we are told that a corporation has 44,904 shares of $26 par value stock outstanding that has a current market value of $238 per share and that the corporation issues a 5-for-1 stock split. The number of shares outstanding goes thus:

Shares outstanding = 44,904 shares

We are also told that the corporation issues a 5-for-1 stock split. Therefore, the new shares will be:

= 44,904 × 5

= 224,520 shares

If the corporation issues a 5-for-1 stock split, the number of shares outstanding will be 224,520.