Helena Corporation declared a 2-for-1 stock split on 8,000 shares of $6 par value common stock.If the market price of the stock had been $25 a share before the split,the par value,number of shares,and approximate market value after the split would be:

Question

Quizplus · Accepted Answer

In a 2-for-1 stock split,par value and approximate market value will be 1/2 of what they were prior to the split and number of shares will be two times what it was.
Par value = Old par value of $6 × 1/2 = $3
Number of shares = Old number of shares of 8,000 × 2 = 16,000
Approximate market value = Old market value of $25 × 1/2 = $12.50

Helena Corporation Declared a 2-For-1 Stock Split on 8,000 Shares