Which of the following occurs when the board of directors declares a 3-for-1 stock split on 10,000 outstanding shares of $15 par common stock?

Question

Quizplus · Accepted Answer

A 3-for-1 stock split means that for every one share a shareholder owns, they will receive three additional shares. Therefore, the number of outstanding shares will increase from 10,000 to 30,000. The par value of the stock remains the same at $15 per share, as a stock split does not affect the par value of the stock.

Which of the Following Occurs When the Board of Directors