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On May 3 , Steele Record Company has declared a three - for - one stock split. The common stock has a par value of

On May 3, Steele Record Company has declared a three-for-one stock split. The common stock has a par value of $6.00. There are 750,000 shares authorized and 6,000 shares issued of which 5,000 shares are outstanding. The market value on May 3 is $8.50 per share. How many shares will be outstanding, and what will be the par value after the new shares have been issued?
a.15,000 shares at $2.00 par value
b.12,000 shares at $3.00 par value
c.18,000 shares at $2.00 par value
d.10,000 shares at $3.00 par value

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