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Shares in Raven Products are selling for $20 per share. There are one million shares outstanding. What will be the share price in each of the following situations? Ignore taxes. (Round your answers to the nearest cent.) a. The stock splits five-for-four. Price $ b. The company pays a 12% stock dividend. Price $ c. The company repurchases 70,000 shares. Price $

Shares in Raven Products are selling for $20 per share. There are one million shares outstanding. What will be the share price in each of the following situations? Ignore taxes. (Round your answers to the nearest cent.) a. The stock splits five-for-four. Price $ b. The company pays a 12% stock dividend. Price $ c. The company repurchases 70,000 shares. Price $

Essentials Of Investments
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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Shares in Raven Products are selling for $20 per share. There are one million shares outstanding. What will be the share price in each of the following situations? Ignore taxes. (Round your answers to the nearest cent.) a. The stock splits five-for-four. Price $ b. The company pays a 12% stock dividend. Price $ c. The company repurchases 70,000 shares. Price $
Transcribed Image Text:Shares in Raven Products are selling for $20 per share. There are one million shares outstanding. What will be the share price in each of the following situations? Ignore taxes. (Round your answers to the nearest cent.) a. The stock splits five-for-four. Price $ b. The company pays a 12% stock dividend. Price $ c. The company repurchases 70,000 shares. Price $
The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $1.5 per share, and there are 25,000 shares of stock outstanding. The market-value balance sheet for Payout is shown below. Assets Cash Fixed assets Liabilities and Equity $1,550,000 $ 400,000 Equity 1,150,000 a. What price is Payout stock selling for today? (Round your answer to 2 decimal places.) Price $ b. What price will it sell for tomorrow? Ignore taxes. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price $
Transcribed Image Text:The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $1.5 per share, and there are 25,000 shares of stock outstanding. The market-value balance sheet for Payout is shown below. Assets Cash Fixed assets Liabilities and Equity $1,550,000 $ 400,000 Equity 1,150,000 a. What price is Payout stock selling for today? (Round your answer to 2 decimal places.) Price $ b. What price will it sell for tomorrow? Ignore taxes. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price $
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