What type of stock split does the firm need

Assignment Help Financial Management
Reference no: EM13940130

A stock currently sells for $8.40 a share. What type of stock split does the firm need to do if it wants to increase the price so that it trades around $25 a share?

2-for-5 reverse stock split

1-for-3 reverse stock split

2-for-3 reverse stock split

5-for-2 stock split

3-for-1 stock split

Reference no: EM13940130

Questions Cloud

Calculate the APR of a loan : Calculate the APR of a loan for $10,125, including loan fees of $350, at 13% for 6 years.
The most difficulty with implementing : Implementing Deming's Point 7, Institute Leadership, can be very challenging. Which group of people in a manufacturing or service organization do you think will have the most difficulty with implementing this point? Why
Initial cost of the project including the flotation costs : You are evaluating a project that requires $460,000 in external financing. The flotation cost of equity is 10.4 percent and the flotation cost of debt is 5.7 percent. What is the initial cost of the project including the flotation costs if you mainta..
Other factors affecting the market price of the stock : You currently own 200 shares of Hanover Co. The stock closed at a price of $22.38 a share today. Tomorrow morning a 10 percent stock dividend will occur. What will be the change in the value of your investment tomorrow assuming there are no other fac..
What type of stock split does the firm need : A stock currently sells for $8.40 a share. What type of stock split does the firm need to do if it wants to increase the price so that it trades around $25 a share?
What is her monthly payment by add-on method : For the best terms on a loan or credit card, you need a credit score above 700. To achieve this, start establishing credit now. Pay all of your bills on time. In addition, use only one-third of your available credit limit and pay off your revolving b..
Escrow deposit for the tax and insurance : Rick Rueta purchased a $75,000 home at 9% for 30 years with a down payment of $20,000. His annual real estate tax is $1,668 along with an annual insurance premium of $828. Rick’s bank requires that his monthly payment include an escrow deposit for th..
At what value should the land be recorded in integrity : On 2 May 19, Integrity Repair Service extended an offer of $335,000 for land that had been priced for sale at $363,000. At what value should the land be recorded in Integrity Repair Service's records?
What is his monthly car payment by formula : Before purchasing a used car, Cody Lind checked www.kbb.com to learn what he should offer for the used car he wanted to buy. Then he conducted a carfax.com search on the car he found to see if the car had ever been in an accident. What is his monthly..

Reviews

Write a Review

Financial Management Questions & Answers

  Compare the cross exchange rate with the direct rate

Determine the cross exchange rate between the Japanese yen and the Australian dollar. Compare the cross exchange rate with the direct rate. Are there any differences? Evaluate the significance of your results.

  What strategy do you propose to the farmers

There are six farmers in Great Britain with access to government land to graze their cows for free. They all must share the land. The grass is a limited resource. What strategy do you propose to the farmers?

  Issued some new preferred stock

ABC Corp. just issued some new preferred stock. The issue will pay a $3 quarterly dividend in perpetuity, beginning 12 years from now. If the market requires a 8% return on this investment, how much does a share of preferred stock cost today?

  What is annual rate of return with continuous compounding

The interest rates in Canada and the United States are 6% and 5% per annum, respectively, with continuous compounding. The spot price of the Canadian dollar is $0.8000.

  Misleading to compare a companys financial ratios

Why is it sometimes misleading to compare a company’s financial ratios with those of other firms that operate in the same industry?

  Use the appropriate divisional discount rate

Based strictly on the calculations, which proposals should be accepted or rejected. Use the appropriate divisional discount rate. The net present value provides the answer directly while the internal rate of return must be compared to the discount ra..

  Made at an effective interest rate

Loan of 12500 is made at an effective interest rate of 8.5%. Payments are made at the end of each interest period. Each payment equals twice the interest due until the borrower pays off the outstanding debt with a final payment of at most, 1800. Find..

  What is the feature of a corporate bond

What is the feature of a corporate bond that protects the purchaser from moral hazard on the part of the borrower?

  What is the duration of assets-da-liabilites and equity

Consider the following bank balance sheet (fixed rates and pure discount securities unless indicated otherwise). Interest rates on liabilities are 10 percent and on assets are 12 percent. (See link for data) What is the duration of assets, DA, liabil..

  What is current value of put option with exercise price

Suppose VS's stock price is currently $20. In the next six months it will either fall to $10 or rise to $30. What is the current value of a put option with an exercise price of $15? The six-month risk-free interest rate is 5% (periodic rate).

  Grandparents set up an account when she was born

Zulemia’s grandparents set up an account when she was born. The account earned 3.75% compounded monthly. She turned 18 today and she has $40000.00 in the account. How much money did her grandparents deposit on the day she was born?

  Returns and probabilities for the three possible states

Given the returns and probabilities for the three possible states listed here, calculate the covariance between the returns of Stock A and Stock B. For convenience, assume that the expected returns of Stock A and Stock B are 0.13 and 0.16, respective..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd