Dillon Corporation splits its common stock 2 for 1, when the market value is $40 per share. Prior to the split, Dillon had 50,000 shares of $10 par value common stock issued and outstanding. After the split, the par value of the stock

Question

Quizplus · Accepted Answer

In a 2-for-1 stock split, the number of shares doubles, and the par value is halved. Therefore, the par value is reduced from $10 to $5 per share.

Dillon Corporation Splits Its Common Stock 2 for 1, When