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?

Q: Robinson's has 45,000 shares of stock outstanding with a par value of $1 per share and a market…

A: The stock split means the company splits its existing number of shares into more shares. The…

Q: On March 1, Florida Blue instituted a 5-for-2 stock split. Before the split, Florida Blue had 150…

A: The share split is a type of corporate event in which the larger value of stock is split into…

Q: Get the Answer with calculation

A: 1. Sales per share one-year ahead = Current Sales per share x (1+Sales Growth Rate)Sales per share…

Q: Net income is 1098529. Compute basic and diluted EPS. WHL average stock price during the year was…

A: - Basic EPS=$2.72- Diluted EPS=$2.59 Explanation:To compute basic and diluted EPS, we need to…

Q: Jackson & Company has no-par value common stock outstanding that is selling at $60 per share. The…

A: Treasury stock = 14,000 x 60 = 840,000 Therefore, Equity decreases by 840,000 and Cash decreases by…

Q: What was the loss to the company due to underpricing?

A: The loss to the company due to underpricing would be calculated as difference in closing price at…

Q: Marcos Company, which had 35,000 shares of common stock outstanding, declared a 4-for-1 stock split.…

A: A stock split refers splitting or dividing a single stock into multiple stocks. The face value and…

Q: Burney Chemicals has stock price Rs.150 per share. They have recently completed a 3-for-1 stock…

A: The share price is the current market price of the share. It is the price of the share at which any…

Q: Mill Creek Corporation (MCC) currently has 435,000 shares of stock outstanding that sell for $60 per…

A: Outstanding shares : 435,000 shares  Selling price per share : $60 per share No tax effects exist in…

Q: Emergency Medical's stock trades at $100 a share. The company is contemplating a 3-for-2 stock…

A: Stock trade at 100 Stock split 3/2 The price of Two share of $100 will be spread over the three…

Q: 6. Market value ratios Ratios are mostly calculated using data drawn from the financial statements…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Zebra Corporation currently has 2,500,000 shares of stock outstanding that sell for RM45 per share.…

A: Shares Outstanding = 2,500,000 Share Price = RM45 per share

Q: Give answer of this one

A: 1. Calculate the sales per share one year ahead To calculate the sales per share one year ahead, we…

Q: A company is undertaking a 2-for-1 stock split.  Which of the following is most likely to be true?

A: Answer: The correct answer is option (a). The shareholder value will double after the split.

Q: Tribbles-R-Us has 200,000 shares outstanding and just paid a $0.25 per share dividend. The market…

A: Beta is a measure of the volatility—or systematic risk Since the systematic risk of tribbles is 30%…

Q: Lengefeld Manufacturing expects to have earnings per share of $2 in the coming year. The firm does…

A: According to Gordon's growth model,Po = wherePo =Current stock priceD1 = Expected dividendr =…

Q: West Wind, Inc. has 4,900,000 shares of common stock outstanding with a market value of $75 per…

A: Earnings per share is calculated using following equation Earnings per share  = Net income / Number…

Q: SoFi Technologies Inc. (SOFI) currently has 13 million shares of common stock outstanding and is…

A: Before split-Total share o/s= 13 millionStock price = $ 215After 5-for-1 Stock Split:New Shares…

Q: On August 19, 2004, Google completed its IPO of 20.0 million shares to the initial investors at $85…

A: Value of underpriced : It is the difference of Closing price of share at first trading day and share…

Q: Gamma Industries has net income of $300,000, and it has 1,875,000 shares of common stock…

A: Gamma Industries has net income of $300,000, and it has 1,875,000 shares of common stock…

Q: MyTel Corp, an Internet service provider, has prospered during the past seven years, and recently…

A: Stock Split :In stock split, the shareholders receive additional shares based on the split ratio,…

Q: Shell Inc. is having a stock split. The current price is $57 per share, and you own 500 shares. The…

A: Stock split involves giving more equity for lessor.

Q: Tribbles-R-Us has 200,000 shares outstanding and just paid a $0.25 per share dividend. The market…

A: Company′sCostofEquity=Rfr+(MRP)∗β.Rfr=Riskfreerate.MRP=Marketriskpremiumβ=Beta

Q: Yesterday, at the market close, the stock of Kevin Spellman, Inc. was trading at $200 per share, and…

A: Solution:-Stock split means the splitting of existing number of shares to multiple parts, i.e. each…

Q: 4. Eaton Corporation just completed an IPO (Initial Public Offering) in which its common stock sold…

A: according to gordon constant  growth formula: price = D1r-gwhere,D1= DIVIDEND NEXT YEARr = rate of…

Q: West Wind, Inc. has 4,700,000 shares of common stock outstanding with a market value of $60 per…

A: given data  no of common shares outstanding = 4,700,000 market value 60 per share expected net…

Q: for-2 stock split. What will the market price per share be after the split? (Do not use the…

A: Stock Split: A stock split for a company increases the number of shares, however, the price of…

Q: Consider the case of Tobotics Inc.: Tobotics Inc. currently has 20,000 shares of common stock…

A: The stock split refers to dividing the existing number of shares into more shares. The stock split…

Q: Gamma Industries has net income of $1,100,000, and it has 1,355,000 shares of common stock…

A: The share price refers to the value of the amount at which is traded in the market. Initially, the…

Q: If a firm has retained earnings of $3.7 million, a common shares account of $5.7 million, and…

A: The stock dividend can be defined as a payment of dividends by issuing additional shares of common…

Q: Emergency Medical's stock trades at $140 a share. The company is contemplating a 3-for-2 stock…

A: Given: Current price = $140 Stock split = 3 for 2

Q: a) “A stock repurchase carries information content”. What type of information has been referred to…

A: PART a)The information content referred to in the statement is the expectation that the company will…

Q: IMM stock on 11/1 traded at $10. On that day, the company announced an acquisition of a small…

A: Beta of a stock is used to determine its volatility with respect to the market. A stock which is as…

Q: Margoles Publishing recently completed its IPO. The stock was offered at a price of $14.14 per…

A: Issue of common stock is one of the ways in which the companies can raise funds for financing the…

Q: Pearce & Company has 7 million shares of $2 par value common stock outstanding. The company believes…

A: Lets understand the meaning of forward stock split. Forward stock split is a split in which shares…

Q: On August 19, 2004, Google completed its IPO of 18.5 million shares to the initial investors at $80…

A: Dollar Value of the underpricing = (Closing price - Issue Price) * No. of shares

Q: Assume Company XYZ had $60 million in net income over the past year, but did not pay any dividends…

A: Earnings per share (EPS) is calculated as a company's profit divided by the outstanding shares of…

Q: All computations and Formula must be done and shown in detail A stock repurchase carries…

A: Stock repurchase, also known as share buyback, refers to when a company buys its own outstanding…

Q: Margoles Publishing recently completed its IPO. The stock was offered at a price of $14.63 per…

A: Company not listed on stock exchanges goes to public by issue of shares to market through…

Q: A company with 825,000 shares outstanding sells for $120 per share announced a 5-for-6 reverse stock…

A: Current stock price = $120 Shares outstanding = 825000 5 for 6 reverse stock split implies for every…

Q: Love Inc. believes that at its current share price of P16.00 the firm is undervalued. Makeover plans…

A: Market capitalization = Current share price x Shares outstanding              = 16 x 20,000,000…

Q: The balance sheet for Quinn Corporation is shown here in market value terms. There are 10,000 shares…

A: To determine the stock price for today, we need to calculate the total equity value and then divide…

Q: Sipacore Inc. is considering one of the three following courses of action: (1) paying a $0.50 cash…

A: The stock split does not affect any stockholder's equity item. It results in an increase in a number…

Q: MyTel Corp. Internet service provider, has prospered during the past seven years, and recently the…

A: Stock split and stock dividend both are corporate actions, however the purposes of both the actions…