User Account

All Pages

How many shares of stock will be outstanding after the split

Assignment Help Accounting Basics
Reference no: EM132642310

Question - Jones Company stock trades at $60 a share. The company is contemplating a 3-for-2 stock split. Currently, the company has EPS of 6.00, DPS of $0.75, and 25 million shares of stock outstanding. Assuming that the stock split will have no effect on the total market value of its equity, what will the company's stock price be after the split?

a. How many shares of stock will be outstanding after the split?

b. Calculate EPS after the split.

c. Calculate DPS after the split.

d. Calculate price per share after the split

e. Calculate price after the split if the PE increases by 1 point (for example, if PE was 10 prior to split, it increases to 11 after the split)

f. Why do companies split their stock? Why might a split cause the P/E to increase?

Reference no: EM132642310

Questions Cloud

What is the correct amount of petty cash fund : What is the correct amount of petty cash fund? A check drawn by Prulife Company to the order of petty cash custodian, representing her salary 5,000
How do make cost of goods sold section of income statement : Direct labor is 50% of raw materials used in production. Increase in raw materials 100,000. Prepare the cost of goods sold section of the income statement?
Give a quick summary of costco company focuses on : Give a quick summary of Costco, Walmart and Amazon companies focuses on. Why did you choose these 3 companies to invest?
What are some of the major findings of early research : What are some of the major findings of early research into the study of genetics in criminology? What does this suggest about human behavior in relation.
How many shares of stock will be outstanding after the split : Jones Company stock trades at $60 a share. The company is contemplating a 3-for-2 stock split. How many shares of stock will be outstanding after the split
Identify any ethical issues that should be considered : Identify which stakeholders you would involve and their roles in the evaluation process. Identify any ethical issues that should be considered.
Which would not be defined as a liability : Which would not be defined as a liability under the Conceptual Framework? Money owing to a supplier for goods purchased. / Wages owing to employees.
What type of accounts of warranty expense : Warranty expense and provision for warranties are what type of accounts? (I) Expense, (II) liability. / (I) Liability, (II) expense.
What amount is included in Es employment income : E used the loan to assist with the purchase of a home. What amount is included in E's employment income for tax purposes in the current year

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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