Pearce & Company has 11 million shares of $1 par value common stock outstanding. The company believes that its current market price of $175 per share is too high and decides to execute a 4-for-1 forward stock split to lower the price. How many shares (in millions) will be outstanding following the stock split, and what will be the new par value per share? * of shares Par value O million s O per share

Pearce & Company has 11 million shares of $1 par value common stock outstanding. The company believes that its current market price of $175 per share is too high and decides to execute a 4-for-1 forward stock split to lower the price. How many shares (in millions) will be outstanding following the stock split, and what will be the new par value per share? * of shares Par value O million s O per share

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 14EB: Nutritious Pet Food Companys board of directors declares a 2-for-1 stock split on June 30 when the...

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Nutritious Pet Food Companys board of directors declares a 2-for-1 stock split on June 30 when the stocks market value per share is $30. At that time, there are 10,000 shares of $1 par value common stock outstanding (none held in treasury). What is the new par value of the shares and how many shares are outstanding after the split?