Miester & Miester has 75,000 shares of stock outstanding at a market price of $87 a share. The company has just announced a 5-for-3 stock split. How many shares of stock will be outstanding after the split?

Question

Quizplus · Accepted Answer

In a 5-for-3 stock split, for every 3 shares an investor holds, they will receive 5 shares in return. To find the new number of shares outstanding, divide the original number of shares by 3, then multiply by 5. So, $75,000 \div 3 \times 5 = 125,000$ shares.

Miester & Miester Has 75,000 Shares of Stock Outstanding at a Market