Team Shirts issued a 2-for-1 stock split.Before the split,Team Shirts had 100,000,$1 par value common shares outstanding.After the split,the par value of each common share is ________.
A)$2.00
B)$1.00
C)$0.50
D)unable to be determined since it is determined by the market not the corporation

Question

Quizplus · Accepted Answer

In a 2-for-1 stock split, the number of shares doubles, but the par value per share is halved. Therefore, the new par value is $0.50.

Team Shirts Issued a 2-For-1 Stock Split