Danio Fisheries issued 320,000 shares of $7 par value stock. The book value of Danio's common stockholders' equity is equal to $60 million. On August 1, Danio Fisheries implements a two-for-one stock split. After the stock split, the par value per share is ________ and the total book value is ________.

Question

Quizplus · Accepted Answer

After a two-for-one stock split, the par value per share is halved, so it becomes $3.50. The total book value remains unchanged at $60 million.

Danio Fisheries Issued 320,000 Shares of $7 Par Value Stock