Asked Mar 11, 2020

 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


Paid-In Capital in Excess of Par—Common


Retained Earnings


Total Stockholders' Equity



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


Expert Answer


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.


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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