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7 July, 18:37

Before a three-for-one stock split, the shares outstanding were 5,000 shares at $12 par.

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  1. 7 July, 18:47
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    After the three is to one split, for every one old share, there will be three new shares.

    So number of new shares = 5000*3 = 15,000 shares

    Since the number of shares increased three fold, the price per share will decrease by three fold.

    So the price per share after split = 12/3 = $4

    So, after the split, there will be 15,000 shares at $4 per share
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