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

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter15: Distributions To Shareholders: Dividends And Repurchases

Section: Chapter Questions

Problem 7P: Stock Split Suppose you own 2,000 common shares of Laurence Incorporated. The EPS is $10.00, the DPS...

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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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NAME Herbalife Nutrition Herc Holdings Heritage Insurance Holdings HRTG Hersha Hospitality Trust CIA HT Hershey HSY HTZ SYMBOL CLOSE NET CHG 57.94 -1.39 26.86 -0.71 14.57 -0.38 Hertz Global Holdings Hess Corp. Hess Midstream Partners HLF HRI HES HESM Hewlett Packard Enterprise HPE 16.59 -0.16 106.24 0.80 -0.77 13.27 42.39 0.15 17.87 0.25 13.18 -0.28 VOLUME DIV YIELD P/E 1,149,773 60.41 389,826 72.99 81,929 19.15 732,879 24.16 1,145,889 114.63 52 WK 52 WK HIGH LOW 34.16 1.20 2.07 47.75 -1.71 24.16 3.10 3.35 12.85 0.24 1.65 22.01 -1.02 2,965,201 25.14 16.50 1.12 6.75 ...dd -5.42 89.10 2.89 2.72 22.00 -0.88 13.01 2.24 -2.78 35.59 1.00 2.36 ...dd 47,899 24.51 16.17 1.43 8.00 14.60 12.09 0.45 3.41 11.46 5,969,511 74.81 11,756,695 19.48 **** **** YTD %CHG Figure 2.8 Listing of stocks traded on the New York Stock Exchange Source: WSJ Online, January 4, 2019. 4.67 5.24 -0.23
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