Answer: 30,000; $110
Explanation:
From the question, we are informed that someone own 5% of Coastal Corporation's 400,000 outstanding common shares and that the stock was trading for $165 per share before Coastal executives announced a 3-for-2 stock split.
The share owned after the split will be:
= 5% × 400,000 × (3/2)
= 0.05 × 400,000 × 1.5
= 30,000
The price after the split will be the current price divided by the split ratio. Tgis will be:
= $165/1.5
= $110
