Question

SHOW Me How Office 365 Calculator Print Item Effect of stock split Willey's Grill & Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Southwest. Willey's Grill & Restaurant, which had 355,000 shares of common stock outstanding, dedared a 2-for-1 stock split. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet a. What will be the number of shares outstanding after the split? Round your answer to nearest whole number. shares b. If the common stock had a market price of $522 per share before the stock split, what would be an approximate market price per share after the split? Round your answer to the nearest dollar

Answer 1

Note : It is not possible for us to open the spreadsheet referred to in the image, hence we have only answered a) and b) part asked in question :

A Part :

No. of shares outstanding before split = 335,000 shares

Split Ratio : 2:1 means an additional share is given for each share held by the shareholder.

Hence No. of shares after split = 335,000 shares *2 = 670,000 shares

B Part :

Market Price of share before stock split = $ 522

Since the number of shares have now doubled, market price per share = 522 $ / 2 = 261 $