How many shares would be outstanding after this action

Assignment Help Finance Basics

Reference no: EM131290292

Global Financial Corporation (GFC) has 10 million shares outstanding, each currently worth $80 per share. The firm's managers are considering a 2-for-1 stock split, but they are concerned with the effect this split announcement will have on the firm's stock price.

a. If GFC's managers announce a 2-for-1 stock split, what exactly will the company do, and what will GFC's stock price likely be after the split?

b. How many total shares of GFC stock will be outstanding after the stock split?

c. If GFC's managers believe the "ideal" stock price for the firm's shares is $20 per share, what should they do? How many shares would be outstanding after this action?

d. Why do you think GFC's managers are considering a stock split?

Reference no: EM131290292

Questions Cloud

What should happen to twilight company''s stock price : What should happen to Twilight Company's stock price on the ex- dividend date, assuming that investors do not have to pay taxes on dividends or capital gains and do not incur any transactions costs in trading shares?

Prepare a? multi-step income statement : Prepare a? multi-step income statement for Clarkson Motorsports for the fiscal year ended November? 30, 2012. Include earnings per share.

The sarbanes oxley act was established : The Sarbanes Oxley Act was established in 2002. Why was it enacted? Describe 6 provisions of the Act? Define the concept of materiality. Give 2 examples and clearly explain why you think that they are material. Accounting Changes & Correction of Err..

Reputation as a great place to work : How concerned one should be about an organization's "brand" and reputation as a great place to work?

How many shares would be outstanding after this action : If GFC's managers believe the "ideal" stock price for the firm's shares is $20 per share, what should they do? How many shares would be outstanding after this action? d. Why do you think GFC's managers are considering a stock split?

Shipping cost for each component : Huang Automotive is presently operating at 75% of capacity. The company recently received an offer from a Korean truck manufacturer to purchase 22,500 units of a power steering system component for $200 per unit. Peter Wu, vice-president of sales, no..

Relationship between csr and employees motivation : "THE EFFECT OF CORPORATE SOCIAL RESPONSIBILITY ON EMPLOYEE MOTIVATION" - Review previous studies that have investigated the relationship between CSR and employees motivation.

Explains the value that professional nursing organizations : Explains the value that professional nursing organizations have in networking.

Prepare bank reconciliation for blockwood checking account : On October 31, 2018, the bank statement for the checking account of Blockwood Video shows a balance of $12,751, while the company’s records show a balance of $12,381. Prepare a bank reconciliation for the Blockwood checking account on October 31, 201..

User Account

All Pages