Question
Computer Inc. has 2 million shares of $5 par value common stock issued and outstanding which is currently selling on the market for $1,000 per
Computer Inc. has 2 million shares of $5 par value common stock issued and outstanding which is currently selling on the market for $1,000 per share. Due to the high market value per share of common stock, Computer Inc decides to have a 4-for-1 stock split. The end result of the stock split will
| reduce stockholders equity by $1.25 per share of common stock | |
| reduce additional-paid-in-capital by $3.75 per share of common stock | |
| increase the current number of shares of common stock outstanding by 8,000,000 shares | |
| reduce the par value of each share of common stock by $3.75 per share |
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