A corporation has 50,000 shares of $28 par value stock outstanding that has a current market value of $150. If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately

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After the 4-for-1 stock split, the corporation will have 200,000 shares outstanding, with a par value of $7 ($28/4) per share. The market value per share will be adjusted accordingly, which in this case will be approximately $37.50 ($150/4).

A Corporation Has 50,000 Shares of $28 Par Value Stock