Cooper Brands has 36,000 shares of stock outstanding at a market price of $61.10 a share. The company just announced a stock split of five-for-thee. What will be the market price per share after the split?

Question

Quizplus · Accepted Answer

The market price per share after the split can be calculated by dividing the total market value of the shares before the split by the new number of shares after the split. The stock split is five-for-three, meaning for every three shares, shareholders now have five shares. The new number of shares = (36,000 shares * 5) / 3 = 60,000 shares. The total market value before the split = 36,000 shares * $61.10 = $2,199,600. The new market price per share = $2,199,600 / 60,000 shares = $36.66.

Cooper Brands Has 36,000 Shares of Stock Outstanding at a Market