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The market value of Yeates Corporation’s common stock had become excessively high. The stock was currently selling for $240 per share. To reduce the market price of the common stock, Yeates declared a 3-for-1 stock split for the 100,000 outstanding shares of its $10 par value common stock. Required: b. Determine the number of common shares outstanding and the par value after the split.

Respuesta :

a. The number of common shares outstanding is  300,000 Shares
b. The par value after the split should be $3.33 per share

Calculation of the no of common shares outstanding and par value:

Since

Outstanding shares = 100,000

Split ratio = 3

Par value common stock = 10

So,

Number of common Share outstanding = Outstanding shares × Split ratio

= 100,000 × 3

= 300,000 Shares
And,

Par value = Par value common stock ÷ Split ratio

= $10 ÷ 3

= $3.33 per share

Learn more about shares here: https://brainly.com/question/24301919

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