Firms earnings per share after the stock split

Assignment Help Financial Management

Reference no: EM131064608

Marston Mfg recently declared a 4 for 1 split for its common shares. Before the split the firm's share price had risen to $600 per share and the firm's CFO felt that this high stock price inhibited trading in the firm's shares. Prior to the split the firm had 8 million shares of stock outstanding and had net income of $36million. A. Before the stock split what was is Marston's earnings per share? Round 4 decimal places. B) Following the stock split, how many shares of common stock will Marston have outstanding? _______million shares, round to the nearest whole number. C) What are the firms earnings per share after the stock split? Round to 4 decimal places. D) If you owned 100 shares of stock before the split, how much are the total earnings for your shares? Round to the nearest dollar. E) How much are the total earnings on your post split shares? F) Were you better off financially as the holder of 100 shares of pre split stock after the 4 for 1 split?

Reference no: EM131064608

Questions Cloud

What is the required rate of return on preferred stock : A stock is trading at $80 per share. The stock is expected to have a year-end dividend of $3 per share (D1= $3), and it is expected to grow at some constant rate g throughout time. What is the required rate of return on a preferred stock with a $50 p..

Benefits and risks of investing in the current global market : Describe the benefits and risks of investing in the current Global market. Be specific concerning present world events and market reactions/trends.

Using the dividend growth model : Assume today is December 31, 2013. Imagine Works Inc. just paid a dividend of $1.10 per share at the end of 2013. The dividend is expected to grow at 18% per year for 3 years, after which time it is expected to grow at a constant rate of 5% annually...

Utilizing the risk free rate and the market portfolio : The portfolio Alpha has an expected return of 18.50% and risk of 60%. The portfolio Gamma has an expected return of 11.75% and risk of 30%. The risk of market portfolio is 40%. Ms. Investor would like to create the portfolio Delta by utilizing the ri..

Firms earnings per share after the stock split : Marston Mfg recently declared a 4 for 1 split for its common shares. Before the split the firm's share price had risen to $600 per share and the firm's CFO felt that this high stock price inhibited trading in the firm's shares. What are the firms ear..

Calculate and interpret their debt ratio-revised debt ratio : The dumonts take- home pay (after deductions for taxes and benefits) is approximately $6045 monthly. Currently nonmortgage debt payments equal $911 (i.e, $405 auto, $100 miscellaneous credit, $196 student loan, and $210 furniture). Calculate and inte..

What rate of return are you earning on this policy : You just paid $360,000 for a policy that will pay you and your heirs $13,200 a year forever. What rate of return are you earning on this policy? 3.42 percent 3.96 percent 2.04 percent 3.54 percent 3.67 percent

Finance its capital expenditures : Your firm needs to raise $10.6 million to finance its capital expenditures for the coming year. The firm earned 4.8 million last year and will pay out half this amount in dividends. If the firm's CFO wants to finance new investments using no more tha..

What is the pretax cost of debt and aftertax cost of debt : Drogo, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 16 years to maturity that is quoted at 105 percent of face value. The issue makes semiannual payments and has an embedded cost of 10 percent annually. Wh..

User Account

All Pages