Effect of Stock Split Willeys Grill Restaurant Corporation

Effect of Stock Split Willey\'s Grill & Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Southwest. Willey\'s Grill & Restaurant, which had 63,000 shares of common stock outstanding, declared a 2-for-1 stock split. a. What will be the number of shares outstanding after the split? x shares b. If the common stock had a market price of $156 per share before the stock split, what would be an approximate market price per share after the split? per share

Solution

1) Solution: 31,500

Explanation: 63000 / 2 = 31,500

2) Solution: 4,914,000

Explanation: 31,500 * 156 = 4,914,000