a-company-with-500000-shares-at-a-par-value-of-050-and-a-market-price-of-30-decl

Question

A company with 500,000 shares at a par value of $0.50 and a market price of $30 declares a 5 for 2 stock split. Calculate the new shares outstanding, new par value, and new market price.

Accepted Answer

1,250,000 shares, $0.20 par value, $12 market price

Answer

1,500,000 shares, $0.10 par value, $10 market price

Answer

1,000,000 shares, $0.25 par value, $15 market price

Answer

750,000 shares, $0.40 par value, $18 market price

A company with 500,000 shares at a par value of \$0.50 and a market price of \$30 declares a 5 for 2 stock split. Calculate the new shares outstanding, new par value, and new market price.