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1. A firm currently has 200,000 shares of stock outstanding at a market price per share of $60. Today, the firm announced a 3-for-1 stock split. What will the price per share be after the split?
$10.00
$20.00
$40.00
$60.00
2. A firm has 50,000 shares of stock outstanding, net income of $100,000, and a PE ratio of 15. What will the firm's PE ratio be if the firm issues additional 10,000 new shares? Assume all else remains constant.
12.0
13.0
15.0
18.0
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