During May, 2016, Backyard Corporation announced a 4-for-1 stock split. This brought the number of shares outstanding from 25,792,000 shares to _____ shares, and its $1.20 par value to _____ per share.

Question

Quizplus · Accepted Answer

A 4-for-1 stock split simply means that the company distributes three additional shares of stock for each share owned by a current shareholder.
25,792,000 million × 4 = 103,168,000 million shares
Par value = $1.20/4 = $0.30 per share

During May, 2016, Backyard Corporation Announced a 4-For-1 Stock Split