A corporation has 50,000 shares of $25 par value stock outstanding that has a current market value of $120. If the corporation issues a 2-for-1 stock split, the market value of the stock is expected to: a. $5
b. $60
c. $25
d. $24

B

Explanation:

A stock split is when a company increases the number of its shares outstanding by a constant proportion  

for example, if a company has 50,000 shares outstanding at a price of $25, earning per share is $1 and dividend per share is $2. this company announces a 2 for 1 split:  

the number of outstanding shares becomes 2 x 50,000 = 100,000  

stock price becomes = $25 / 2 =$12.5  

earnings per share = $1 / 2 = $0.50  

dividend per share = $2 / 2 = $1

Market value = $120 / 2 = 60

After a stock split, the price of the shares falls. so it can be used to adjust the market price of a stock so it falls within a preferred trading range.

A stock split doesn't affect the balances in shareholders equity account.  

Stock split doesn't affect the cash holdings of the firm.

decentralization can the employees to get more involved in the business decision making

answer; intellectual property protection;