QUESTION 3.2
Tusker Corporation is considering a 3- for- 2 share split. It currently has the shareholder’s equity position shown. The current share price is R120 per share. The most recent periods earnings available for ordinary shares are included in
Ordinary shares (100 000 shares at R3 R300 000
per share
Share premium R1 700 000
Retained earnings R10 000 000
Total shareholders’ equity R13 000 000
What change in share price would you expect to result from the share split?
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