Answer:
Wrong, the total number of shares outstanding will be 50,000.
Explanation:
The corporation is issuing a 5-for-1 stock split, that means that for every 1 outstanding stock, four more will be created (= 1 + 4 = 5 total). So if the company currently has 10,000 shares outstanding, the total number of shares will increase to: 10,000 x 5 = 50,000.
The par value of the stock should decrease to $20 (= $100 par value / 5)
