Share splits: Split-Gram Ltd has announced a 4-to-1 share split. If the company currently has 1 million shares outstanding, how many outstanding shares will it have after the split?
A) 4 million
B) 250,000
C) 2 million
D) 1 million

Question

Quizplus · Accepted Answer

In a 4-to-1 share split, each existing share is divided into 4 shares. Therefore, the number of shares will be 4 times the original amount, resulting in 4 million shares.

Share Splits: Split-Gram Ltd Has Announced a 4-To-1 Share Split