On December 10,Vandalia Co.split its stock 5-for-2 when the market value was $49 per share.Prior to the split,Vandalia had 250,000 shares of $15 par value stock.After the split,Vandalia's outstanding shares would be

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After the split, for every 2 shares owned, a shareholder now has 5 shares. Therefore, the number of shares increases by a factor of 5/2. Multiplying the original number of shares (250,000) by 5/2 gives 625,000 shares.