Dillon Corporation Splits Its Ordinary Shares 2 for 1, When

Multiple Choice

Dillon Corporation splits its ordinary shares 2 for 1, when the market value is $40 per share. Prior to the split, Dillon had 50,000 ordinary shares with a $20 par value issued and outstanding. After the split, the par value of the shares

A) remains the same.
B) is reduced to $2 per share.
C) is reduced to $10 per share.
D) is reduced to $20 per share.