(Solution) - The market value of Lan Corporation s common stock had become -(2025 Original AI-Free Solution)

Paper Details

The market value of Lan Corporation?s common stock had become excessively high. The stock was currently selling for $160 per share. To reduce the market price of the common stock, Lan declared a 2-for-1 stock split for the 400,000 outstanding shares of its $10 par common stock.
Required
a. How will Lan Corporation?s books be affected by the stock split?
b. Determine the number of common shares outstanding and the par value after the split.
c. Explain how the market value of the stock will be affected by the stock split.