i. If Sebonia Berhad holds 600 units of shares of Eclip before the split, calculate the number of shares that Sebonia will have after the split. ii. Compute the total value of Sebonia Berhad’s investment in Eclips Berhad share before and after Eclip Berhad’s the split.
i. If Sebonia Berhad holds 600 units of shares of Eclip before the split, calculate the number of shares that Sebonia will have after the split. ii. Compute the total value of Sebonia Berhad’s investment in Eclips Berhad share before and after Eclip Berhad’s the split.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Eclip Berhad has 300,000 common share outstanding, a price per earnings ratio of 6, and RM750,000 available for common shareholders. The company has decided on a 5 for 3 splits.
i. If Sebonia Berhad holds 600 units of shares of Eclip before the split, calculate the number of shares that Sebonia will have after the split.
ii. Compute the total value of Sebonia Berhad’s investment in Eclips Berhad share before and after Eclip Berhad’s the split.
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