Assume That You Own 1,700 Shares of $10 Par Value

question 23

Essay

Assume that you own 1,700 shares of $10 par value common stock and the company has a 2-for-1 stock split when the market price per share is $52.
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?

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Definitions:

Testing Supplies

Materials or equipment used to conduct tests and evaluations during various stages of production or research.

External Failure Cost

Costs incurred when products or services fail to meet quality standards after being delivered to the customer, including returns, repairs, and warranties.

Quality Cost Report

A document or analysis that outlines the costs associated with ensuring the quality of products or services, including prevention, appraisal, and failure costs.

Warranty Repairs

Services offered to repair or replace products free of charge within a specified period after the sale, under the terms of a warranty.