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Dillon Corporation Splits Its Common Stock 2 for 1, When

Question 178

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Dillon Corporation splits its common stock 2 for 1, when the market value is $40 per share. Prior to the split, Dillon had 50,000 shares of $10 par value common stock issued and outstanding. After the split, the par value of the stock


A) remains the same.
B) is reduced to $2 per share.
C) is reduced to $5 per share.
D) is reduced to $20 per share.

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