Effect of Stock SplitCopper Grill Restaurant Corporation wholesales ovens and ranges to restaurantsthroughout the Southwest. Copper Grill Restaurant Corporation, which had 21,000shares of common stock outstanding, declared a 2-for-1 stock split.a. What will be the number of shares outstanding after the split?sharesb. If the common stock had a market price of $228 per share before the stock split,what would be an approximate market price per share after the split?per share

Stock split is a situation where a particular number of shares are offered for each share held of…

Answered: Stock Split

Business

Accounting

Stock Split

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter15: Shareholders’ Equity: Capital Contributions And Distributions

Section: Chapter Questions

Problem 15E

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

Effect of Stock Split
Copper Grill Restaurant Corporation wholesales ovens and ranges to restaurants
throughout the Southwest. Copper Grill Restaurant Corporation, which had 21,000
shares of common stock outstanding, declared a 2-for-1 stock split.
a. What will be the number of shares outstanding after the split?
shares
b. If the common stock had a market price of $228 per share before the stock split,
what would be an approximate market price per share after the split?
per share

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