Mario's Has 24,000 Shares of Stock Outstanding with a Par

question 48

Multiple Choice

Mario's has 24,000 shares of stock outstanding with a par value of $1 per share and a market price of $11.40 a share. The balance sheet shows $68,600 in the capital in excess of par value account, and $34,910 in the retained earnings account. The company just announced a stock split of three-for-one. What will be the capital in excess of par account value after the split?

• A) $22,867
• B) $68,600
• C) $46,000
• D) $148,200
• E) $205,800