Before a 4-for-1 stock split, the shares outstanding were 60,000 shares at $80.00 par. After the split, what was the par value and number of shares?

Question

Quizplus · Accepted Answer

In a 4-for-1 stock split, each share is divided into 4, so the number of shares increases fourfold (60,000 shares become 240,000 shares). The par value per share is divided by 4 as well ($80.00 becomes $20.00/share).

Before a 4-For-1 Stock Split, the Shares Outstanding Were 60,000