A company has 300,000 shares outstanding of common stock with a par value of $2 per share. A 2:1 stock split is declared. After the split, the company will have
A) 150,000 shares of $4 par value stock.
B) 300,000 shares of $4 par value stock.
C) 600,000 shares of $2 par value stock.
D) 600,000 shares of $1 par value stock.
E) answer cannot be determined without knowing the market value of the stock after the split.
Correct Answer:
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