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Assume That You Own 1,500 Shares of $10 Par Value

Question 42

Multiple Choice

Assume that you own 1,500 shares of $10 par value common stock and the company has a 5-for-1 stock split when the market price per share is $30. What will probably happen to the market price per share of the stock and the par value per share of the stock?


A) Market price per share will be about $6 per share, and par value will be $2 per share.
B) Market price per share will be about $6 per share, and par value will be $50 per share.
C) Market price per share will be about $150 per share, and par value will be $2 per share.
D) Market price per share will be about $150 per share, and par value will be $50 per share.

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