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Effect of Stock Split
Audrey's Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Northwest. Audrey's Restaurant Corporation, which had 30,000 shares of common stock outstanding, declared a 4-for-1 stock split (3 additional shares for each share issued).
Problem a. What will be the number of shares outstanding after the split?
Problem b. If the common stock had a market price of $240 per share before the stock split, what would be an approximate market price per share after the split?
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