The Peanut Shop Has 5,000 Shares of Stock Outstanding with a Par

Multiple Choice

The Peanut Shop has 5,000 shares of stock outstanding with a par value of $1.00 per share. The current market value of the firm is $390,000. The company just announced a 3-for-1 stock split. What will the market price per share be after the split?

A) $13
B) $26
C) $42
D) $52
E) $78