Stock SplitSuppose you own 5,000 common sharesof Laurence Incorporated. The EPS is$8.00, the DPS is $5.00, and the stocksells for $65 per share. Laurenceannounces a 2-for-1 split. Immediatelyafter the split, how many shares will youhave? Round your answer to the nearestwhole number.sharesWhat will the adjusted EPS and DPS be?Round your answers to the nearest cent.EPS: $DPS: $What would you expect the stock priceto be? Round your answer to the nearestcent.A

companies to split the stock so that after stock split there are large number of shares and prices…

Answered: Suppose you own 5,000 common s of…

Suppose you own 5,000 common s of Laurence Incorporated. The EPS $8.00, the DPS is $5.00, and the st ells for $65 per share. Laurence

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

Stock Split
Suppose you own 5,000 common shares
of Laurence Incorporated. The EPS is
$8.00, the DPS is $5.00, and the stock
sells for $65 per share. Laurence
announces a 2-for-1 split. Immediately
after the split, how many shares will you
have? Round your answer to the nearest
whole number.
shares
What will the adjusted EPS and DPS be?
Round your answers to the nearest cent.
EPS: $
DPS: $
What would you expect the stock price
to be? Round your answer to the nearest
cent.
A

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