Assume that you own 400 shares of $10 par value common stock of a company and the
Question:
Assume that you own 400 shares of $10 par value common stock of a company and the company has a 2-for-1 stock split when the market price per share is $60.
Required:
a. How many shares of common stock will you own after the stock split?
b. What will probably happen to the market price per share of the stock?
c. What will probably happen to the par value per share of the stock?
Common StockCommon stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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a A 2for1 split means that for every share now owned the ...View the full answer
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Related Book For 
Accounting What the Numbers Mean
ISBN: 978-1260565492
12th edition
Authors: David Marshall, Wayne McManus, Daniel Viele
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