Consider the case of Tobotics Inc.: Tobotics Inc. currently has 20,000 shares of common stock outstanding. Its management believes that its current stock price of $90 per share is too high. The company is planning to conduct stock splits in the ratio of two for one as described in the animation. If Tobotics Inc. declares a two-for-one stock split, what will be the price of the company’s stock after the split, assuming that the total value of the firm’s stock remains the same after the split? ______ Scorecard Corp. is one of Tobotics Inc.’s leading competitors. Scorecard Corp.’s market intelligence research team shares Tobotics Inc.’s plans of announcing a stock split, influencing the distribution policymakers. Consequently, executives at Scorecard Corp. decide to offer stock dividends to their shareholders. A stock dividend is another way of keeping the stock price from going too high. Scorecard Corp. currently has 1,100,000 shares of common stock outstanding. If the firm pays a 3% stock dividend, how many shares will the firm issue to its existing shareholders? 36,300 shares 31,350 shares 26,400 shares 33,000 shares
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Consider the case of Tobotics Inc.:
Tobotics Inc. currently has 20,000 shares of common stock outstanding. Its management believes that its current stock price of $90 per share is too high. The company is planning to conduct stock splits in the ratio of two for one as described in the animation.
If Tobotics Inc. declares a two-for-one stock split, what will be the price of the company’s stock after the split, assuming that the total value of the firm’s stock remains the same after the split? ______
Scorecard Corp. is one of Tobotics Inc.’s leading competitors. Scorecard Corp.’s
A stock dividend is another way of keeping the stock price from going too high. Scorecard Corp. currently has 1,100,000 shares of common stock outstanding.
If the firm pays a 3% stock dividend, how many shares will the firm issue to its existing shareholders?
36,300 shares
31,350 shares
26,400 shares
33,000 shares
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