The board of directors announces a 2-for-1 stock split on 20,000 outstanding common shares,with an average issue price of $15.Immediately after the stock split,the:

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A 2-for-1 stock split means that each outstanding common share will be split into two, effectively doubling the number of shares outstanding. In this case, 20,000 outstanding common shares will become 40,000 outstanding common shares. However, the average issue price of the shares will be adjusted accordingly to maintain the same total value of the shares. Therefore, the average issue price will be halved to $7.50 per share. The book value of the shares may or may not change depending on other factors, such as changes in assets and liabilities.

The Board of Directors Announces a 2-For-1 Stock Split on 20,000