Ask Question
BusinessBusiness
26 October, 05:49

Gorton Corporation has 30,000 shares of $10 par value common stock outstanding, when it announces a 2-for-1 stock split. Before the split, the stock had a market price of $120 per share. After the split, how many shares of stock will be outstanding? Common Stock Outstanding? What will be the approximate market price per share?

+1
Answers (1)
  1. 26 October, 08:13
    0
    Common Stock Outstanding Shares=60,000 shares

    Market Price Per share = $60

    Explanation:

    2-for-1 stock split means that every shareholder will receive additional common stock on each share.

    Given dа ta:

    Number of shares=30,000 shares

    Market price per share=$120

    Required:

    Common Stock Outstanding=?

    Market Price per share=?

    Solution:

    After split, Common Stock Outstanding Shares=30,000 shares*2

    Common Stock Outstanding Shares=60,000 shares

    Due to the split the price of share will become half.

    Market Price per share=$120/2

    Market Price Per share = $60
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Gorton Corporation has 30,000 shares of $10 par value common stock outstanding, when it announces a 2-for-1 stock split. Before the split, ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Describe at least three things a bank would consider about you when deciding whether to give you a loan.
Answers (2)
According to the principles guiding how ads should be laid out? A. no element of the ad should dominate. B. the ad should appear unusual and asymmetrical to create eye appeal. C. the space within the ad should be broken into asymmetrical units. D.
Answers (2)
Drake operates a trucking business, and one of his trucks was damaged in a traffic accident. The truck was purchased for $52,000 and the adjusted basis was $22,000 at the time of the accident.
Answers (1)
Ecologists try to reduce the likelihood that variables not under the control of the experimenter will unduly influence the results of an experiment by a.
Answers (1)
Apparel purchased 90 new shirts and recorded a total cost of $2,644 determined as follows: Invoice cost $ 2,160 Shipping charges 194 Import taxes and duties 160 Interest (6.
Answers (1)
New Questions in Business
If you had to recommend one product, which product would you recommend they create? Underline your selection: Organic Bloom Shampoo Moisturizing black soap shampoo with dandruff control Coconut protein shampoo and conditioner
Answers (1)
o decide whether or not to buy a season ski pass. A daily pass costs $80. A season ski pass costs $450. The skier would have to rent skis with either pass for $25 per day.
Answers (1)
im was a crook. He embezzled $450,000 from his employer. When his employer found out about his misdeeds, before even conducting a thorough investigation, he went and gave all the details to a local newspaper agency.
Answers (1)
The accounting records for Eisner Manufacturing Company included the following cost information relating to its first year of operations: Direct materials $ 52,000 Direct labor $ 80,000 Fixed manufacturing overhead $ 91,000 Variable manufacturing
Answers (1)
Why is strategy implementation referred to as the "graveyard of strategy"?
Answers (1)
Home » Business » Gorton Corporation has 30,000 shares of $10 par value common stock outstanding, when it announces a 2-for-1 stock split. Before the split, the stock had a market price of $120 per share.
Sign Up Forgot Password?