In 2014 the market value of Apple Corporation's common stock had become excessively high. On June 6th, 2014 Apple Inc. declared a 7-for-1 stock split for the 861.38 million outstanding shares of its $0.00007 par common stock. What is the number of common shares outstanding after the stock split

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Business

Jesse Duran

18 February, 21:51

In 2014 the market value of Apple Corporation's common stock had become excessively high. On June 6th, 2014 Apple Inc. declared a 7-for-1 stock split for the 861.38 million outstanding shares of its $0.00007 par common stock. What is the number of common shares outstanding after the stock split

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Thalia Bradley · Answer 1

The number of common shares outstanding after stock-split is 6029.66 million

Explanation:

A 7-1 stock split implies that for every share that a shareholder has previously, he gets 7 now.

As a result, the total outstanding common shares now would the previous common shares multiplied by 7.

Hence the new outstanding common shares = 861.38 million*7=6029.66 million

The equity of equity share capital share stays the same as there was no new cash investment in the company but the par value per share is also divided by 7 to give $0.00001 per share ($0.00007/7)