Question

The first image is the original question, the rest are the answer choices for each box.

Question 5 2 pts Microsoft announced a 2 for 1 stock split. Before the split they had 5.4b shares outstanding and par value was $0.0000125 Before the split the balance in the common stock account was: $ Select] After the split shares outstanding are (in billions):Select After the split par value is: [Select] Select ] After the split the balance in the common stock is $

Answer 1

Solution a:

Before split, balance in common stock = 5.4*1,000,000,000* $0.0000125 = $67,500

Solution b:

After split, shares outstanding = 5.4 *2 = 10.8B

Solution c:

After split , Par value = $0.0000125/ 2 = $0.00000625

Solution d:

After split, Balance in common stock = $67,500