Pete's Pets has 15,000 shares of stock outstanding with a par value of $1 per share and a market price of $26 a share.The balance sheet shows $15,000 in the common stock account,$315,000 in the capital in excess of par value account,and $189,000 in the retained earnings account.The firm just announced a 5-for-4 stock split.How many shares of stock will be outstanding after the split?
A) 10,000 shares
B) 12,000 shares
C) 18,750 shares
D) 22,250 shares
E) 24,000 shares
Correct Answer:
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