The common stock of Margot, Inc. is selling for $56 a share. The book value per share is $12. Currently, the firm has a total market value of $89,600. How many shares of stock will be outstanding if the firm does a 2-for-1 stock split?

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Before the stock split, the total number of shares can be calculated by dividing the total market value by the price per share: $89,600 / $56 = 1,600 shares. After a 2-for-1 stock split, the number of shares will double, resulting in 1,600 * 2 = 3,200 shares.

The Common Stock of Margot, Inc