Preferred Products Started Business on March 1, 2012, and Issued

question 68

True/False

Preferred Products started business on March 1, 2012, and issued 100,000 shares of $2 par value common stock at a market price of $50 per share. One year later, the share price had soared to $120. If Preferred Products does a 3-for-1 stock split, the balance sheet will show common stock with a par value of $0.67 per share.