Should a stock split change price-earnings ratio for wilson

Assignment Help Finance Basics

Reference no: EM131792512

Question: Wilson Pharmaceuticals' stock has done very well in the market during the last three years. It has risen from $45 to $70 per share. The firm's current statement of stockholders' equity is as follows:

a. What changes would occur in the statement of stockholders' equity after a two-for-one stock split?

b. What changes would occur in the statement of stockholders' equity after a three-for-one stock split? c. Assume that Wilson earned $14 million. What would be its earnings per share before and after the two-for-one stock split? After the three-for-one stock split?

d. What would be the price per share after the two-for-one stock split? After the three-for-one stock split? (Assume that the price-earnings ratio of 20 stays the same.)

e. Should a stock split change the price-earnings ratio for Wilson?

Reference no: EM131792512

Questions Cloud

What is the conversion value : Pittsburgh Steel Company has a convertible bond outstanding, trading in the marketplace at $930. The par value is $1,000, the coupon rate is 8 percent.

Production schedule and loom assignments for each fabric : The final production schedule and loom assignments for each fabric. The projected total contribution profit.

Write a recommendation letter : I have a recommendation letter from my boss, but he is too busy to write it for me. He wants me to write it for him, then he will sign the signature.

Principle and practices that can be used to manage diversity : Explain the basic principles and practices that can be used to manage diversity.

Should a stock split change price-earnings ratio for wilson : Wilson Pharmaceuticals' stock has done very well in the market during the last three years. It has risen from $45 to $70 per share.

Compare the criminal evaluations : Briefly describe the three types of evaluations you selected and explain when and under what circumstances you would use each.

Develop an inventory ordering policy : Dunstreet's Department Store would like to develop an inventory ordering policy of a 99 percent probability of not stocking out.

What are some new ways casinos are using technology : Discuss what are some new ways casinos are using technology?

How many shares would an investor end up : Ace Products sells marked playing cards to blackjack dealers. It has not paid a dividend in many years, but is currently contemplating.

User Account

All Pages