Parr Corporation had $10 par stock with a market price of $80, when it declared a 2-for-1 stock split. After the stock split, the number of shares outstanding will double, and the market price of the stock should drop to about $40.

Question

Quizplus · Accepted Answer

In a 2-for-1 stock split, the par value and market price per share will be cut in half, and the number of outstanding shares will double.

Parr Corporation Had $10 Par Stock with a Market Price