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South Shore Limited Has 21,000 Shares of Stock Outstanding with a Par

Question 63

Multiple Choice

South Shore Limited has 21,000 shares of stock outstanding with a par value of $1 per share and a market price of $7.50 a share.The firm just announced a 5-for-2 stock split.What will the par value of the stock be after the split?


A) $0.40
B) $0.80
C) $1.00
D) $1.40
E) $1.60

Correct Answer:

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