Robinson's has 15,000 shares of stock outstanding with a par value of $1 per share and a market price of $36 a share.How many shares of stock will be outstanding of the firm does a 3-for-2 stock split?

Question

Quizplus · Accepted Answer

A 3-for-2 stock split means that for every two shares of stock currently outstanding, the company will issue three new shares. So to calculate the new number of outstanding shares, we multiply the current number of shares by 3/2: 
15,000 x 3/2 = 22,500
Therefore, the answer is D, 22,500 shares.

Robinson's Has 15,000 Shares of Stock Outstanding with a Par