Danio Fisheries issued 200,000 shares of $2 par value stock.The book value of Danio's common stockholders' equity is equal to $20 million.On August 1,Danio Fisheries implements a two-for-one stock split.After the stock split,the par value per share is ________ and the total book value is ________.

Question

Quizplus · Accepted Answer

After a two-for-one stock split, the par value per share is halved, so it becomes $1. The total book value of equity remains unchanged at $20 million.

Danio Fisheries Issued 200,000 Shares of $2 Par Value Stock