h. Schroeder Company had 200,000 shares of common stock outstanding with a $2 par value and retained earnings of $90,000. In 2010, earnings per share were $0.50. In 2011, the company split the stock 2 for 1. Which of the following would result from the stock split?

1. Retained earnings will decrease as a result of the stock split.

2. A total of 400,000 shares of common stock will be outstanding.

3. The par value would become $4 par. 4.

Retained earnings will increase as a result of the stock split.

5. None of the above.

v