A company with 400,000 shares at a par value of \$0.80 and a market price of \$35 declares a 3 for 2 stock split. What are the new shares outstanding, new par value, and new market price?

• A. 500,000 shares, \$0.60 par value, \$28 market price
• B. 400,000 shares, \$0.80 par value, \$35 market price
• C. 600,000 shares, \$0.53 par value, \$23.33 market price
• D. 300,000 shares, \$1.20 par value, \$52.50 market price

Answer: (C)