# Effect of stock split Copper Grill Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Southwest. Copper Grill Restaurant Corporation, which had 50,000 shares of common stock outstanding, declared a 3-for-l stock split. a. What will be the number of shares outstanding after the split? b. If the common stock had a market price of $210 per share before the stock split, what would be an approximate market price per share alter the split? BuyFind ### Accounting 27th Edition WARREN + 5 others Publisher: Cengage Learning, ISBN: 9781337272094 BuyFind ### Accounting 27th Edition WARREN + 5 others Publisher: Cengage Learning, ISBN: 9781337272094 #### Solutions Chapter Section Chapter 13, Problem 13.11EX Textbook Problem ## Effect of stock splitCopper Grill Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Southwest. Copper Grill Restaurant Corporation, which had 50,000 shares of common stock outstanding, declared a 3-for-l stock split. a. What will be the number of shares outstanding after the split? b. If the common stock had a market price of$210 per share before the stock split, what would be an approximate market price per share alter the split?

Expert Solution

(a)

To determine

Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant.

To determine: The number of shares outstanding after the split.

### Explanation of Solution

Determine the number of shares outstanding after the split.

NumberÂ ofÂ sharesoutstandingÂ afterÂ theÂ split}=Â [NumberÂ ofÂ sharesÂ outstandingÂ beforeÂ

Expert Solution

(b)

To determine
The approximate market price per share after the split, if market price per share before the stock split is \$210.

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