NeptBune, Inc. has 175,000 shares of stock outstanding at a market price of $59 a share....

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Question

NeptBune, Inc. has 175,000 shares of stock outstanding at a market price of $59 a share....

NeptBune, Inc. has 175,000 shares of stock outstanding at a market price of $59 a share. The company has just announced a 3-for-2 stock split. How many shares of stock will be outstanding after the split?

Select one:

a. 87,500 shares

b. 262,500 shares

c. 350,000 shares

d. 116,667 shares

business accounting

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Answer 1

Answer #1

Ans: b. 262500 Shares

Explanation: When a stock that we own does a 3-for-2 split, the company issues three new shares for every two old shares we had at the time of the split..

For example, if we have 1000 shares before the 3-for-2 split, multiply 1000 by 1.5 (3/2) to find that now we have 1500 new shares.

In the given ques,neptune has 175000, if the company stock split 3 for 2 stock then shares outstanding after the split will be 175000*3/2= 262500

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Answer 2

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NeptBune, Inc. has 175,000 shares of stock outstanding at a market price of $59 a share....

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