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Robinson's has 34,000 shares of stock outstanding with a par value of $1.00 per share and a market price of $50 a share. The balance sheet shows $34,000 in the common stock account, $455,000 in the paid in surplus account, and $410,000 in the retained earnings account. The firm just announced a 2-for-1 stock split. How many shares of stock will be outstanding after the split?

Respuesta :

Answer:

The number of shares after the split is 68,000 shares

Explanation:

The computation of the number of shares of stock will be outstanding after the split is shown below:

= Oustanding shares × stock split ratio

= 34,000 shares × 2 ÷ 1

= 68,000 shares

hence, the number of shares after the split is 68,000 shares

We simply applied the above formula

And, the same is to be considered