Willis & Company has 20 million shares of $1 par value common stock outstanding. The company...
Willis & Company has 20 million shares of $1 par value common stock outstanding. The company believes that its current market price of $100 per share is too high and decides to execute a 4-for-1 forward stock split to lower the price.
How many shares will be outstanding following the stock
split?
What will be the new par value per share?
Homework Answers
|
Outstanding shares = 20 million * 4/1 = 80 million |
|
|
New par value per share = $1,* 1/4 = 0.25 per share |
Comment if you face any issues
a) Outstanding share after stock split = 20*4 = 80 million
b) New par value per share = 1/4 = $0.25 per share
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