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## Accounting

 Accounting Basics Cost Accounting Financial Accounting Managerial Accounting Auditing Taxation

LaLa Company currently has 100,000 shares of common stock outstanding and a price-earnings ratio of seven. Net income for the recently ended year is \$375,000. LaLa board of directors declared a 15-for-2 stock split. Sunshine owned 100 shares of LaLa company before the split. What is the approximate value of Sunshine's investment in LaLa immediately after the split:

a. \$ 26

b. \$ 350

c. \$2,625

d. \$5,250

Accounting Basics, Accounting

• Category:- Accounting Basics
• Reference No.:- M947646

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