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

question 40

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

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Definitions:

Contracts under Seal

Formal agreements that are validated by a wax seal or its modern equivalent, often denoting a heightened sense of formality and solemnity.

Letters of Credit

Financial instruments issued by a bank guaranteeing a buyer's payment to a seller upon the fulfillment of agreed conditions.

Research Data

Information collected, observed, or created for purposes of analysis to produce original research results.

Earn

To receive something in exchange for service or work done, usually refers to money.