a-company-with-300000-shares-at-a-par-value-of-075-and-a-market-price-of-50-decl

Question

A company with 300,000 shares at a par value of $0.75 and a market price of $50 declares a 2 for 1 stock split. What are the new shares outstanding, new par value, and new market price?

Accepted Answer

600,000 shares, $0.375 par value, $25 market price

Answer

450,000 shares, $0.50 par value, $30 market price

Answer

150,000 shares, $1.50 par value, $100 market price

Answer

300,000 shares, $0.75 par value, $50 market price

A company with 300,000 shares at a par value of \$0.75 and a market price of \$50 declares a 2 for 1 stock split. What are the new shares outstanding, new par value, and new market price?