XYZ Corporation issued a four-for-one stock split.The number of outstanding shares before the split was 20,000 and the par value was $24 per share.After the split,what was the par value per share and number of shares?

Question

Quizplus · Accepted Answer

In a four-for-one stock split, the number of shares increases by a factor of four, so 20,000 shares become 80,000 shares. The par value per share is divided by four, so $24 becomes $6 per share.

XYZ Corporation Issued a Four-For-One Stock Split