Paiva Corporation splits its common stock 2 for 1 when the market value is $80 per share. Prior to the split Paiva had 100000 shares of $10 par value common stock issued and outstanding. After the split the par value of the stock

Question

Quizplus · Accepted Answer

When a stock splits, the par value per share is adjusted in proportion to the split ratio. In this case, a 2 for 1 split halves the par value from $10 to $5 per share.

Paiva Corporation Splits Its Common Stock 2 for 1 When