Mueller Brothers has 38,000 shares of stock outstanding at a price per share of $59. How many shares will be outstanding if the firm does a 3-for-2 stock split?

Question

Quizplus · Accepted Answer

In a 3-for-2 stock split, each shareholder receives 3 shares for every 2 shares they own. Therefore, the number of shares outstanding will increase by a factor of 3/2. Calculating this: 38,000 shares * (3/2) = 57,000 shares.

Mueller Brothers Has 38,000 Shares of Stock Outstanding at a Price