posted by Shan
Effect of Stock Split
Gino's Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Midwest. Gino's Restaurant Corporation, which had 100,000 shares of common stock outstanding, declared a 5-for-1 stock split (4 additional shares for each share issued).
a. What will be the number of shares outstanding after the split?
b. If the common stock had a market price of $200 per share before the stock split, what would be an approximate market price per share after the split?
$ per share