Alexander Pools Has 700,000 Shares Authorized and 250,000 Shares Issued $\begin{array}{cl}\text { \# of Shares Issued } & \text { Par Value } &\text { Market Price per Share }\\500,000&\$ 2.00 &\$30.00\\\end{array}$

question 19

Multiple Choice

Alexander Pools has 700,000 shares authorized and 250,000 shares issued and outstanding of its $4 par value common stock.The stock is currently selling for $60 per share.If Alexander Pools declared and issued a three-for-one stock split adjusting its par value,what would be the effect on the following items after the stock split? Assume the old shares were exchanged for 750,000 new shares.

• A)\(\begin{array}{cl}
• \text { \# of Shares Issued } & \text { Par Value } &\text { Market Price per Share }\\
• 500,000&\$ 2.00 &\$30.00\\
• \end{array}\)
• B)\(\begin{array}{lccc}
• \text { \# of Shares Issued } & \text { ParValue } &\text { Market Price per Share }\\
• 750,000 &\$1.33&\$20.00\\
• \end{array}\)
• C)\(\begin{array}{lccc}
• \text { \# of Shares Issued } & \text { ParValue }&\text { Market Price per Share } \\
• 750,000 & \$4.00 & \$20.00 \\
• \end{array}\)
• D)\(\begin{array}{lccc}
• \text { \# of Shares Issued } & \text { ParValue } &\text { Market Price per Share }\\
• 1,000,000 & \$ 1.00 & \$15.00\\
• \end{array}\)
• E) \(\begin{array}{lccc}
• \text { \# of Shares Issued } & \text { ParValue } &\text { Market Price per Share }\\
• 1,000,000 & \$ 12.00 & \$20.00
• \end{array}\)

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