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iragen [17]
3 years ago
9

Paiva Corporation splits its common stock 2 for 1, when the market value is $80 per share. Prior to the split, Paiva had 100,000

shares of $10 par value common stock issued and outstanding. After the split, the par value of the stock a.is reduced to $5 per sthare. b.is reduced to $2 per share c.is reduced to $20 per share d.remans the same
Business
1 answer:
nydimaria [60]3 years ago
3 0

Answer:

a. is reduced to $5 per share

Explanation:

Data given in the question

Market value per share = $80

Number of shares = 100,000

Par value = $10

So, after the split, the par value of the stock is

= Par value of the stock ÷ stock split ratio

= $10 ÷ 2

= $5 per share

By dividing the par value of the stock by the stock split ratio we can get the par value of the stock

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Hickory point amusement park sells admission tickets for $50 per person for one visit. variable costs are $15 per visitor and fi
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ANSWER: $1,250,000
4 0
4 years ago
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