Giacomo Company manufactures outdoor tables and chairs for European-style cafes. On January 1st, Year 1,...

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Accounting

Giacomo Company manufactures outdoor tables and chairs for European-style cafes. On January 1st, Year 1, Giacomo issues 500,000 shares of $2 par value common stock for $10 per share. This is the first time Giacomo has issued common stock. Giacomo does not issue any other stock during Year 1.
Assume Giacomo decides to execute an 7:4 stock split. What will be the new par value of Giacomo's stock? Round your final answer to the nearest two decimal places.

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