Ask Question
29 April, 06:06

On June 30, the board of directors of Sandals, Inc., declares a 2-for-1 stock split on its 30,000, $1 par, common shares. The market price of Sandals common stock is $35 on June 30. What are the number of shares, par value per share, and market price per share immediately after the 2-for-1 stock split? (Round dollar values to 2 decimal places.)

+4
Answers (1)
  1. 29 April, 09:43
    0
    Number shares of after the split = 60,000

    Par value per share after the split = $0.50

    Market price per share after the split = $17.50

    Explanation:

    Number shares of after the split = 30,000 * 2 = 60,000

    Par value per share after the split = $1 : 2 = $0.50

    Market price per share after the split = $35 : 2 = $17.50

    This shows that immediately after the 2-for-1 stock split, the number of shares will change to 60,000 shares, par value per share will change to $0.50, and market price per share will change to $17.50.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On June 30, the board of directors of Sandals, Inc., declares a 2-for-1 stock split on its 30,000, $1 par, common shares. The market price ...” 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