Nico Inc, Which Had 60,000 Shares of Common Stock Outstanding, Declared

question 134

Essay

Nico Inc., which had 60,000 shares of common stock outstanding, declared a 4-for-1 stock split.
(a)What will be the number of shares outstanding after the split?
(b)If the common stock had a market price of $160 per share before the stock split, what would be an approximate market price per share after the split?

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Definitions:

Financial Statement

A formal record of the financial activities of a business, person, or other entity, presenting its financial performance and position at a given point in time.

Specific Date

A particular day singled out from others because of its significance or relevance to an event or action.

Supplies on Credit

The acquisition of business supplies with an agreement to pay the supplier at a later date.

Accounting Equation

The fundamental equation of double-entry bookkeeping, stating that assets equal liabilities plus equity (Assets = Liabilities + Equity).