What is the cost per share after the split

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Question - XYZ Co. has 30 million shares outstanding trading at $60, with an EPS of $2.50 and a P/E multiple of 24. The company earns net income of $200 million for the year and pays out an annual dividend of $1.50 per share. The board of directors is considering a 3-for-2 stock split.

1. Calculate the company's earnings per share after the stock split

2. Calculate the company's stock price after the stock split

3. Calculate the company's dividend yield after the stock split

4. Given that an investor initially purchased 1,000 shares of the company at $50 per share, what is the cost per share after the split?

Reference no: EM133132724

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