Powell Corporation had $10 par stock with a market price of $60,when it declared a 2-for-1 stock split.After the stock split,the number of shares outstanding will double,and the market price of the stock should drop to about $30.

Question

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In a 2-for-1 stock split,the par value and market price per share will be cut in half,and the number of outstanding shares will double.

Powell Corporation Had $10 Par Stock with a Market Price