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gage com/ mtakeAssignment takeAssignmentMan doinvoker-assignmentsatakeAssignmentSessonlator:ass ment takeanprogresm eBook Show Me How Calculator 1 Effect of Stock Split Willey\'s Grill & Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Southwest. Willey\'s Grill & Restaurant, which had 21 shares of common stock outstanding, declared a 3-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 $120 per share before the stock solit, what would be an approximate market price per share after the splt per share 633 PM Check My Work

Solution

a.Number of shares outstanding=(21000*3)=63000 shares.

b.Market price after stock split=($120/3)=$40 per share.