A Company Has 400,000 Outstanding Shares of $3 Par Value

Multiple Choice

A company has 400,000 outstanding shares of $3 par value common stock. A 1:2 stock split is declared. After the split, the company will have

A) 800,000 shares of $6 par value stock.
B) 200,000 shares of $6 par value stock.
C) 200,000 shares of $3 par value stock.
D) 800,000 shares of $3 par value stock.
E) answer cannot be determined without knowing the market value of the stock after the split.