Edie's Health and Beauty Supply Has 125,000 Shares of Stock

Edie's Health and Beauty Supply has 125,000 shares of stock outstanding with a par value of $1 per share and a market value of $5 a share. The company has retained earnings of $76,500 and capital in excess of par of $340,000. The company just announced a 1-for-5 reverse stock split. What will the par value per share be after the split?

A) $0.20
B) $1.00
C) $2.50
D) $5.00
E) $10.00