A corporation has 60,000 shares of $25 par value stock outstanding that has a current market value of $120. If the corporation issues a 5-for-1 stock split, the number of shares outstanding will be:

Question

Quizplus · Accepted Answer

After the stock split, each old share will be replaced by 5 new shares. So, the total number of shares outstanding will be:

60,000 x 5 = 300,000

Therefore, the correct option is C) 300,000.

A Corporation Has 60,000 Shares of $25 Par Value Stock