Assume that you own 1,700 shares of $10 par value common stock and the company has a 2-for-1 stock split when the market price per share is $52.
Required:
(a.)How many shares of common stock will you own after the stock split?
(b.)What will probably happen to the market price per share of the stock?
(c.)What will probably happen to the par value per share of the stock?

Question

Quizplus · Accepted Answer

The Answer of Assume that you own 1,700 shares of $10 par value common stock and the company has a 2-for-1 stock split when the market price per share is $52.
Required:
(a.)How many shares of common stock will you own after the stock split?
(b.)What will probably happen to the market price per share of the stock?
(c.)What will probably happen to the par value per share of the stock?

Assume That You Own 1,700 Shares of $10 Par Value