Parr Corporation Had $10 Par Stock with a Market Price

question 47

True/False

Parr Corporation had $10 par stock with a market price of $80, when it declared a 2-for-1 stock split. After the stock split, the number of shares outstanding will double, and the market price of the stock should drop to about $40.

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Definitions:

Gtt

A medical abbreviation for "guttae," meaning drops; often used in prescriptions to specify medication dosages in drop form.

Proportion

A part, share, or number considered in comparative relation to a whole.

Ratio

A quantitative relationship between two numbers showing how many times one value contains or is contained within the other.

Fluid Ounce

A unit of volume used primarily in the United States to measure liquids, equivalent to approximately 29.57 milliliters.