Toombs Media Corp. recently completed a 3-for-1 stock split. Prior to the split, its stock sold for $80 per share. The firm's total market value was unchanged by the split. Other things held constant, what is the best estimate of the stock's post-split price? $240 $120 $26.40 $22.40 $26.67
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- The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company’s stock currently trades at $60 per share. Compute the stock’s earnings per share (EPS). What is the stock’s P/E ratio? Determine what the stock’s dividend yield would be if it paid $1.75 per share to common stockholders.Mid-State BankCorp recently declared a 7-for-2 stock split. Prior to the split, the stock sold for $100 per share. If the firm's total market value is unchanged by the split, what will the stock price be following the split? Select one: a. $28.57 b. $25.43 c. $26.29 d. $28.86 e. $35.71Loiselle Graphics recently announced a 3-for-1 stock split. Prior to the split, the company's stock was trading at $90 per share. The split had no effect on the wealth of the company's investors. What will be the new stock price? $180 $30 $270 $45 $60
- A company has just announced a 3-for-1 stock split,effective immediately. Prior to the split, the companyhad a market value of $5 billion with 100 millionshares outstanding. Assuming the split conveys no newinformation about the company, what are the value ofthe company, the number of shares outstanding, andthe price per share after the split? If the actual marketprice immediately following the split is $17.00 pershare, what does this tell us about market efficiency?17. Whited Products recently completed a 5-for-1 stock split. Prior to the split, its stock sold for $145 per share. If the firm's total market value increased by 6% as a result of increased liquidity and favorable signaling effects, what was the stock price following the split? a. $32.89 b. $24.90 c. $32.28 d. $30.74 e. $34.12Downie Foods recently completed a 4-for-1 stock split. Prior to the split, its stock sold for $70 per share. If the firm's total market value increased by 5% as a result of increased liquidity caused by the split, what was the stock price following the split?
- What effect will a two-for-one stock split have on the following items found on a firm's financial statements? a. Earnings per share $5.00. Round your answer to the nearest cent. Initial amount $5.00 $ b. Total equity $10,000,000. Round your answer to the nearest dollar. Initial amount $ New amount Initial amount $4,000,000 New amount $10,000,000 c. Long-term debt $4,600,000. Round your answer to the nearest dollar. Effect $ New amount Effect Initial amount $4,600,000 $ d. Additional paid-in capital $1,689,000. Round your answer to the nearest dollar. Effect New amount $ New amount -Select- Effect New amount Initial amount $1,689,000 e. Number of shares outstanding 800,000. Round your answer to the nearest whole number. Initial amount 800,000 f. Earnings $4,000,000. Round your answer to the nearest dollar. Effect -Select- -Select- -Select- Effect -Select- -Select-ABC recently completed a 5-for-1 stock split. Prior to the split, its stock sold for P120 per share. If the firm's total market value increased by 15% as a result of increased liquidity and favorable signaling effects, what was the stock price following the split?Felton Publishing recently completed its IPO. The stock was offered at $14.07 per share. On the first day of trading, the stock closed at $19.97 per share. a. What was the initial return on Felton? b. Who benefited from this underpricing? Who lost, and why?
- The owners' equity accounts for Vulcano International are shown here: Common stock ($.50 par value) Capital surplus Retained earnings $ 20,000 210,000 587,300 $ 817,300 Total owners' equity a-1.If the company declares a 4-for-1 stock split, how many shares are outstanding now? (Do not round intermediate calculations.) a- What is the new par value per share? (Do not round intermediate calculations and 2. round your answer to 3 decimal places, e.g., 32.161.) b- If the company declares a 1-for-5 reverse stock split, how many shares are 1. outstanding now? (Do not round intermediate calculations.) b- What is the new par value per share? (Do not round intermediate calculations and 2. round your answer to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. 160,000 0.125 8,000 800.00 a-1. New shares outstanding a-2. New par value b-1. New shares outstanding b-2. New par value GA $ per share per shareThe owners’ equity accounts for Vulcano International are shown here: Common stock ($.50 par value) $ 20,000 Capital surplus 210,000 Retained earnings 587,300 Total owners’ equity $ 817,300 a-1. If the company declares a 4-for-1 stock split, how many shares are outstanding now? (Do not round intermediate calculations.) a-2. What is the new par value per share? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) b-1. If the company declares a 1-for-5 reverse stock split, how many shares are outstanding now? (Do not round intermediate calculations.) b-2. What is the new par value per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)9. Becker Financial recently declared a 2-for-1 stock split. Prior to the split, the stock sold for $120 per share. If the firm's total market value is unchanged by the split, what will the stock price be following the split?