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XYZ Corporation announces a 3-for-2 stock split. If an investor owns 150 shares before the split, how many shares will they own after the split?a.100b.225c.200d.150

Question

XYZ Corporation announces a 3-for-2 stock split. If an investor owns 150 shares before the split, how many shares will they own after the split?a.100b.225c.200d.150

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Solution

In a 3-for-2 stock split, for every 2 shares an investor owns, they receive 3 shares.

Step 1: Determine the ratio of the stock split. In this case, it's 3-for-2.

Step 2: Calculate the number of shares the investor will own after the split.

To do this, divide the number of shares the investor currently owns by the second number in the ratio (2 in this case), then multiply the result by the first number in the ratio (3 in this case).

So, if the investor owns 150 shares:

(150 / 2) * 3 = 225

So, the investor will own 225 shares after the stock split.

Therefore, the correct answer is b.225.

This problem has been solved

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