Which of the following occurs when the board of directors declares a 3-for-1 stock split on 20,000 outstanding shares of $25 par common stock?
A) The par value of the stock remains the same.
B) The par value of the stock increases to $50 per share.
C) The number of outstanding shares remains at 20,000.
D) The number of outstanding shares increases to 60,000.

Question

Quizplus · Accepted Answer

20,000 shares outstanding before the stock split × 3 = 60,000 shares outstanding after the stock split

Which of the Following Occurs When the Board of Directors