The Tinslow Co.has 125,000 shares of stock outstanding at a market price of $93 a share.The company has just announced a 5-for-2 stock split.How many shares of stock will be outstanding after the split?

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Quizplus · Accepted Answer

In a 5-for-2 stock split, for every 2 shares an investor holds, they will receive 5 shares in return. To find the new number of shares outstanding, multiply the original number of shares by 5 and then divide by 2. So, $125,000 \times \frac{5}{2} = 312,500$.