Share dividend be if coldwater does not split the stock

Assignment Help Financial Management

Reference no: EM131543673

Coldwater Fishery is considering a 1-for-4 reverse stock split. Its stock is currently selling for $15 per share. Coldwater plans to pay a dividend equal to $0.48 per share after the split. But it would like to pay an equivalent dividend per share even if the split does not take place. (a) What will the price of the stock be immediately after the stock split? (b) What should the per share dividend be if Coldwater doesn’t split the stock?

Reference no: EM131543673

Questions Cloud

Recently declared ten percent stock dividend : Kitty Hawk Airlines recently declared a 10 percent stock dividend. Prior to the stock dividend, the equity section on Kitty Hawk’s balance sheet was.

Calculate the required monthly payments to pay off the loan : calculate the required monthly payments to pay off the loan.

Created successful business models : A few Internet companies have created successful business models. Examples of these would be Amazon.com and Ebay.

Two independent investment opportunities : Aunt Bea’s Barbeque (ABB) has two independent investment opportunities this year: Project S costs $45,000, and it has an IRR equal to 11 percent;

Share dividend be if coldwater does not split the stock : What should the per share dividend be if Coldwater doesn’t split the stock?

Constant payout ratio dividend policy : The company follows a constant payout ratio dividend policy. If Headline generates $1.25 millon in income this year, how much will be paid in dividends?

What is the amount of six equal annual deposits : What is the amount of six equal annual deposits that can provide ten annual withdrawals,

Common stock must be issued to raise new funds : what will be the total funds the company can invest in capital budgeting projects this year before new common stock must be issued to raise new funds?

Rapid auto transport follows constant payout ratio : Rapid Auto Transport (RAT) follows a constant payout ratio dividend policy, which requires the company to pay out 30 percent of income as dividends each year.

User Account

All Pages