Dillon Corporation Splits Its Common Stock 2 for 1, When

question 178

Multiple Choice

Dillon Corporation splits its common stock 2 for 1, when the market value is $40 per share. Prior to the split, Dillon had 50,000 shares of $10 par value common stock issued and outstanding. After the split, the par value of the stock

• A) remains the same.
• B) is reduced to $2 per share.
• C) is reduced to $5 per share.
• D) is reduced to $20 per share.

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