Montedosa Corporation has 400,000 shares of common stock outstanding, a P/E ratio of 8, and P500,000 available for common shareholders. The board of directors has just voted a 3-2 stock split. a. If you have 100 shares of stock before the stock split, how many shares will you have after the split up? b. What was the total value of your investment in Montedosa stock before the split? c. What should be the total value of your investment in Montedosa stock after the split?
Montedosa Corporation has 400,000 shares of common stock outstanding, a P/E ratio of 8, and P500,000 available for common shareholders. The board of directors has just voted a 3-2 stock split. a. If you have 100 shares of stock before the stock split, how many shares will you have after the split up? b. What was the total value of your investment in Montedosa stock before the split? c. What should be the total value of your investment in Montedosa stock after 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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Montedosa Corporation has 400,000 shares of common stock outstanding, a P/E ratio of 8, and P500,000 available for common shareholders. The board of directors has just voted a 3-2 stock split.
a. If you have 100 shares of stock before the stock split, how many shares will you have after the split up?
b. What was the total value of your investment in Montedosa stock before the split?
c. What should be the total value of your investment in Montedosa stock after the
split?
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