Question

East Coast Marina has 148,000 shares of stock outstanding. The current market value of the firm is $11.68 million. The company has capital in excess of par value of $1.7 million and a common stock account value of $148,000. The company is planning a stock split of 5-for-3 What will the market price per share be after the split? $15.63 $15.78 $16.73 $17.52 $47.35

Answer 1

Answer:

the market price per share be after the split is $47.35

Explanation:

Given data

share = 148000

current market value = $11.68 million

capital in excess = $1.7 million

common stock =$148,000

to find out

market price per share

solution

we will find out market price by the given formula that is

market price / share = ( current market value / share ) × 3/5

put here all these value to get the market price

market price / share = ( 11.68 million / 148000 ) × 3/5

market price / share = 47.35

so the market price per share be after the split is $47.35