In June 2017, Newcastle Inc. announced a 3-for-1 stock split. On the split date, Newcastle had about 81.9 million shares outstanding.
After the split the number of shares outstanding was:
A) 245.7 million
B) 54.6 million
C) 27.3 million
D) 163.8 million
E) None of the above

Question

Quizplus · Accepted Answer

In a 3-for-1 stock split, each share is divided into three shares, so the total number of shares outstanding is multiplied by three. Therefore, 81.9 million shares outstanding before the split would become 81.9 million * 3 = 245.7 million shares after the split.