Robinson's Has 15,000 Shares Outstanding with a Par Value of £1.00

question 72

Multiple Choice

Robinson's has 15,000 shares outstanding with a par value of £1.00 per share and a market price of £36 a share.The statement of financial position shows £15,000 in the ordinary equity account,
£315,000 in the additional paid in capital account, and £189,000 in the retained earnings account.
The firm just announced a 3-for-2 stock split.What will the market price per share be after the split?

• A)£18
• B)£24
• C)£42
• D)£48
• E)£54