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?

---

Definitions:

Win/Lose Approach

A strategy or mindset focused on achieving victory or success even if it means that others must face loss or defeat.

Organizational Change

Modifications in the structure, strategies, or processes of an organization aimed at improving effectiveness, adapting to new market conditions, or fostering innovation.

Economic Pressures

The various financial forces or conditions that influence decisions and outcomes in the economy or within individual businesses.

Lay Off

A temporary or permanent dismissal of employees from their jobs, often due to economic downturns or company restructuring.