Romax Company announced a 2-for-1 stock split on its common stock . Before the announcement, there were

Question:

Romax Company announced a 2-for-1 stock split on its common stock. Before the announcement, there were 200,000 shares of $1 par common stock outstanding. Determine how many shares of common stock will be outstanding after the stock split. What will be the par value of each share? What effect does the stock split have on total shareholders’ equity?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...