D is corrent. A stock split results in an increase or decrease in the number of shares outstanding and a corresponding decrease or increase in the par value per share. A 5-for-1 split in this case would increase the shares outstanding to 50,000 and decrease the par value per share to $2 ($10/5). Total par value is not affected by a stock split (10,000 × $10 before split; 50,000 × $2 after split).
A is incorrect. A stock split results in an increase or decrease in the number of shares outstanding and a corresponding decrease or increase in the par value per share. A 5-for-1 split in this case would increase the shares outstanding to 50,000 and decrease the par value per share to $2 ($10/5). Total par value is not affected by a stock split (10,000 × $10 before split; 50,000 × $2 after split).
A is incorrect. A stock split results in an increase or decrease in the number of shares outstanding and a corresponding decrease or increase in the par value per share. A 5-for-1 split in this case would increase the shares outstanding to 50,000 and decrease the par value per share to $2 ($10/5). Total par value is not affected by a stock split (10,000 × $10 before split; 50,000 × $2 after split).
A is incorrect. A stock split results in an increase or decrease in the number of shares outstanding and a corresponding decrease or increase in the par value per share. A 5-for-1 split in this case would increase the shares outstanding to 50,000 and decrease the par value per share to $2 ($10/5). Total par value is not affected by a stock split (10,000 × $10 before split; 50,000 × $2 after split).
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