Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

Exercise 3

Smelling Company declared a 2-for-l stock split on its common stock in order to intentionally reduce the market value of its stock so that it would be an attractive investment for a larger set of investors. The company's common stock is described as follows:
Common stock: 100,000 shares outstanding, $ 10 par value, originally sold at $ 12.50. current market price $50.
Describe the likely impact, if any. that the 2-for-l stock split will have on (a) the number of shares outstanding, (b) the market price of the stock, and (c) the total stockholder's equity attributable to common stock.