Bento Inc. had 500000 shares of common stock outstanding before a stock split occurred and 1500000 shares outstanding after the stock split. The stock split was

Question

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The stock split increased the number of shares three times, from 500000 to 1500000. This means that for every one share the company had before the split, it now has three shares. Therefore, the stock split was 3-for-1. None of the other options would result in a three-fold increase in the number of shares.

Bento Inc Had 500000 Shares of Common Stock Outstanding Before a a Stock