Aa is a pharmaceutical company and plants

Assignment Help Finance Basics
Reference no: EM13962734

AA is a pharmaceutical company and plants to 
             adopt a stock splits by giving 4 stocks for 3 existing stocks
The current stock price per share is $60
The company's managers believe the total market value would
              increase by 5%
This is because of the expected improvement in companies' liquidity that will follow the company's plan
Find the stock's expected price immediately after the stock split.
1. $45
2. $47.25
3. $50
4. $52.50

Reference no: EM13962734

Questions Cloud

A machine needs a minimum of 100 sec to sort 1000 names by : A machine needs a minimum of 100 sec to sort 1000 names by quick sort the minimum time needed to sort 100 names will be approximately?
Describes a project needs and asks for proposed solutions : Request for Proposals (RFP) are defined as documents that describes a project's needs and asks for proposed solutions from qualified vendors (Peters, 2011)
The withit corporation is considering two alternatives : The Withit Corporation is considering two alternatives for automating their machine-parts operation.  Alternative 1 requires an initial investment of $70,000 and decreasing yearly O&M costs as shown in the table below.  It has a five-year life span.
Make to persuade upper management to use suggestions : Select three different things you would suggest for succession planning at your firm explain why you would recommend these to upper management, how these three ideas would make a difference and what points you would make to persuade upper management ..
Aa is a pharmaceutical company and plants : AA is a pharmaceutical company and plants to               adopt a stock splits by giving
Examples of personal or professional decisions : What are some examples of personal or professional decisions where constrained optimization might be applied? You don't have to formulate the mathematical problem, just discuss what the decision variables would be,
About the cooperative strategy : From an ethical perspective, determine how much information a firm is obliged to tell a potential strategic alliance partner about what it expects to learn from the cooperative arrangement. Explain your rationale. From the e-Activity, determine which..
Rewrite the two constraints as equations : Rewrite the two constraints as equations by adding slack variables S1 and S2. Set up the initial simplex tableau for this problem.
Differentiation between foreign branching-equity investment : Discuss in scholarly detail a differentiation between foreign branching, equity investment, and wholly owned subsidiaries. In addition, what are some risks firms face with a foreign subsidiary strategy? Explain.

Reviews

Write a Review

Finance Basics Questions & Answers

  Consider a project with the required return of r percent

consider a project with a required return of r percent that costs i and will last for n years. the project uses

  What is orange cost of common equity

The target capital structure of Orange Corporation is 40 percent common stock, 10 percent preferred stock, and 50 percent debt.

  What position is equivalent to a long forward contract to

what position is equivalent to a long forward contract to buy an asset at k on a certain date and a put option to sell

  What is the reduction in outstanding cash balances

What is the daily dollar return that could be earned on these savings? (Round your answer to 2 decimal places. (e.g., 32.16))

  Statement of financial position

Prepare an income statement for the year ended 31st July 2013, and a statement of financial position (balance sheet) as at that date, for Ms Lee's business. These statements and income statement should where relevant follow IFRS principles.

  What would acetates weighted average cost of captial be if

acetate inc. has equity with a market value of 25 million and debt with a market value of 10 million. the firms

  Computation of yield to maturity at a current market

Computation of yield to maturity at a current market price of bond and Would you pay $829 for each bond if you thought that a "fair" market interest rate for such bonds was 12%- that is if r=12%

  What is the ebitda coverage ration

What is the EBITDA coverage ration?

  Prepare the pro forma balance sheet for sales of 5500 any

question a firm with sales of 5000 has the following balance sheetassets liabilities and equity as of

  Develop and describe a strategic measurement

Develop and describe a strategic measurement "scorecard" that incorporates the financial measures applied in this course. Consider the prospect of new equity owners and explain why this is important.

  Alan had saved up 252000 how much more must he save each

1. if you deposit 15000 today and earn 8 annual interest how much will you have in 9 years?2. tiffany will receive a

  What is the amount of the initial cash flow

Other equipment costing $514,000 will also be required. What is the amount of the initial cash flow for this expansion project? please show all work thanks!

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd