Tamara owns 595 shares of stock in a home appliance company. The value of the stocks is $12.75 per share. The company offers a 5:1 stock split.
How many shares does Tamara own of the company after the stock split?
Can someone help me other than saying "meow" as a answer and explanation
5:1 stock split means that for every share, Tamara gets 5 shares.
psydag, i'm surprised you actually helped somebody FOR ONCE and didn't just be rude and tell them to go google it.
Certainly! To calculate the number of shares Tamara owns after the stock split, you need to understand what a stock split is.
A stock split is when a company increases the number of outstanding shares by multiplying the existing shares. In this case, the company is offering a 5:1 stock split, which means for every one share Tamara owns, she will receive five new shares.
To calculate the number of shares after the stock split, you can follow these steps:
1. Determine the initial number of shares Tamara owns: Tamara currently owns 595 shares.
2. Multiply the initial number of shares by the stock split ratio: Since the stock split is 5:1, you need to multiply the initial shares by 5.
Calculation: 595 shares * 5 = 2,975 shares
Therefore, after the stock split, Tamara will own 2,975 shares of the company.