Blossom Corporation splits its common stock 2 for 1, when the market value is $60 per share. Prior to the split, Blossom had 61000 shares of $30 par value common stock issued and outstanding. After the split, the par value of the stock a) is reduced to $15 per share. b) remains the same. c) is reduced to $60 per share. d) is reduced to $2 per share.
Blossom Corporation splits its common stock 2 for 1, when the market value is $60 per share. Prior to the split, Blossom had 61000 shares of $30 par value common stock issued and outstanding. After the split, the par value of the stock a) is reduced to $15 per share. b) remains the same. c) is reduced to $60 per share. d) is reduced to $2 per share.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Blossom Corporation splits its common stock 2 for 1, when the market value is $60 per share. Prior to the split, Blossom had 61000 shares of $30 par value common stock issued and outstanding. After the split, the par value of the stock
a) is reduced to $15 per share.
b) remains the same.
c) is reduced to $60 per share.
d) is reduced to $2 per share.
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