Mario's Has 18,000 Shares of Stock Outstanding with a Par

question 162

Multiple Choice

Mario's has 18,000 shares of stock outstanding with a par value of $1.00 per share and a market price of $33 a share. The firm just announced a 5-for-3 stock split. What will the par value of the stock be after the split?

• A) $0.40
• B) $0.60
• C) $1.00
• D) $1.30
• E) $1.50

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Definitions:

Not Officers

Individuals or entities that do not hold an official position or authority within an organization.

Bad Business Decision

A judgment made in a business context that leads to outcomes failing to meet desired or expected objectives, often resulting in financial loss or missed opportunities.

Corporate Officer

An individual holding a position of authority in a corporation, often involved in high-level decisions and responsible for the day-to-day management and operational decisions.

Corporate Employees

Individuals who are hired to work for a corporation and often enjoy certain benefits and legal protections.