The common stock of Checkers,Inc.is selling for $56 a share and the par value per share is $1.Currently,the firm has a total market value of $812,000.How many shares of stock will be outstanding if the firm does a 3-for-2 stock split?
A)9,667 shares
B)12,500 shares
C)14,500 shares
D)17,750 shares
E)21,750 shares

Question

Quizplus · Accepted Answer

Number of shares = ($812,000/$56) × 3/2 = 21,750 shares

The Common Stock of Checkers,Inc