The Tinslow Co. has 125,000 shares of stock outstanding at a market price of $93 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

A 5-for-3 stock split means that for every 3 shares of stock owned, the shareholder will receive an additional 2 shares. Therefore, the total number of shares outstanding after the split will be calculated as follows:
125,000 x (5/3) = 208,333 shares. Thus, the best choice is E, 208,333 shares.