Question
Asked Mar 11, 2020
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 Raedy Corporation reported the following equity section on its current balance sheet. The common stock is currently selling for $20.25 per share.

 

Common Stock, $5 par, 337,000 shares authorized, 157,000 shares issued and outstanding

$785,000

Paid-In Capital in Excess of Par—Common

140,000

Retained Earnings

301,000

Total Stockholders' Equity

$1,226,000

 

After a 2-for-1 stock split, what is the number of issued shares?

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Expert Answer

Definition

Stock-spilt means an issue of new shares to the existing shareholders of the company. A 2 for 1 stock split means that 1 additional share is given for every share held.

Explanation

A 2 for 1 stock split means that 1 additional share is given for every share held.

In the given case, the company has 157,000 shares outstanding before the stock-split, after the stock spilt the total number of...

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