What are the firms earnings per share after the stock split

Reference no: EM131488831

Question: (Stock splits) TOTAL Group recently declared a 4-for-1 stock split for its common shares. Before the split the firm's share price had risen to € 200 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 615 million shares of stock outstanding and had net income of €12,135 million. Nominal price of one share was € 10, and was decreased to €2.5.

a. Before the stock split what was TOTAL Group's earnings per share?

b. Following the stock split, how many shares of common stock will TOTAL Group have outstanding?

c. What are the firm's earnings per share after the stock split?

d. If you owned 100 shares of stock before the split, how much are the total earnings for your shares? How much are the total earnings on your post-split shares?

e. Were you better off financially as the holder of 100 shares of pre-split stock after the 4-for-1 split? Explain.

Reference no: EM131488831

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