Papas Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Northeast. Papas Restaurant Corporation, which had

Question:

Papa’s Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Northeast. Papa’s Restaurant Corporation, which had 18,000 shares of common stock outstanding, declared a 4-for-1 stock split (3 additional shares for each share issued).

a. What will be the number of shares outstanding after the split?

b. If the common stock had a market price of $280 per share before the stock split, what would be an approximate market price per share after the split?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...