Waterway Corporation splits its common stock 2 for 1, when the market value is $89 per...

Transcribed Image Text:

Waterway Corporation splits its common stock 2 for 1, when the market value is $89 per share. Prior to the split, Waterway had 100000 shares of $20 par value common stock issued and outstanding. After the split, the par value of the stock O remains the same. O is reduced to $10 per share. O is reduced to $2 per share. O is reduced to $40 per share. Waterway Corporation splits its common stock 2 for 1, when the market value is $89 per share. Prior to the split, Waterway had 100000 shares of $20 par value common stock issued and outstanding. After the split, the par value of the stock O remains the same. O is reduced to $10 per share. O is reduced to $2 per share. O is reduced to $40 per share. Waterway Corporation splits its common stock 2 for 1, when the market value is $89 per share. Prior to the split, Waterway had 100000 shares of $20 par value common stock issued and outstanding. After the split, the par value of the stock O remains the same. O is reduced to $10 per share. O is reduced to $2 per share. O is reduced to $40 per share.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below When a company performs a 2for1 stock ... View the full answer