ABC Corporation Issued a Two-For-One Stock Split

question 33

Multiple Choice

ABC Corporation issued a two-for-one stock split. The number of outstanding shares before the split was 20,000 and the par value was $24 per share. After the split, what was the par value per share and number of shares? (Round your answer to the nearest cent.)

• A) 40,000 shares and $24 per share
• B) 40,000 shares and $6.00 per share
• C) 40,000 shares and $12.00 per share
• D) 40,000 shares and $48 per share

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Definitions:

Inorganic Compounds

Chemical compounds that generally do not contain carbon-hydrogen bonds, including salts, metals, and minerals.

Organic Compounds

Chemical substances that contain carbon bonded to hydrogen, with a vast range of biological, industrial, and environmental applications.

Kinetic Energy

The energy that an object possesses due to its motion, calculated as one-half the mass of the object multiplied by the square of its velocity.

Uranium Oxide

A compound of uranium that is used as a nuclear fuel in reactors and as a colorant in ceramics.