Before a 3-For-1 Stock Split,the Shares Outstanding Were 5,000 Shares

question 53

Multiple Choice

Before a 3-for-1 stock split,the shares outstanding were 5,000 shares at $12 par.After the split,what was the par value and number of shares?

• A)15,000 shares and $12/share
• B)20,000 shares and $6/share
• C)15,000 shares and $4/share
• D)5,000 shares and $48/share

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Definitions:

Bond Quoted

The listed price or value of a bond in the financial markets, typically expressed as a percentage of its face value.

Stock Value

The price or worth of a particular stock, determined by market conditions and the company's financial health.

Convertible Bond

A type of bond that the holder can convert into a specific number of shares of the issuer's common stock, under certain conditions.

Premium Price

The higher price charged for a product or service that is perceived to have a greater value compared to its alternatives.