West Wind, Inc. has 5,300,000 shares of common stock outstanding with a market value of $80 per share. Net income for the coming year is expected to be $7,400,000. What impact will a two-for-one stock split have on the earnings per share and on the price of the stock? Round the earnings per share to the nearest cent and the prices of the stock to the nearest dollar. EPS before the split: $   EPS after the split: $   Price of the stock before the split: $   per share Price of the stock after the split: $   per share

Big Industries has the following market-value balance sheet. The stock currently sells for $20 a share, and there are 1,260 shares outstanding. The firm will either pay a $1 per share dividend or repurchase $1,260 worth of stock. Ignore taxes. Liabilities and Assets Equity $ 7,200 Fixed assets 29,300 Debt $11,300 25,200 Cash Equity a. What will be the subsequent price per share if the firm pays a dividend? b. What will be the subsequent price per share if the firm repurchases stock? (Round your answer to the nearest dollar.) c. If total earnings of the firm are $25,500 a year, find earnings per share if the firm pays a dividend. (Do not round intermediate calculations. Round your answer to 3 decimal places.) d. If total earnings of the firm are $25,500 a year, now find earnings per share if the firm repurchases stock. (Do not round intermediate calculations. Round your answer to 3 decimal places.) e. If total earnings of the firm are $25,500 a year, find the price-earnings ratio if the…

assume evco, inc., has a current stock price of $59 and will pay a $1.75 dividend in one year; its equity cost of capital is 13%. what price must you expect evco stock to sell for immediately after the firm pays the dividend in one year to justify its current price? the expected price is $ (round to the nearest cent.)

The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $1 per share, and there are 20,000 shares of stock outstanding. The market-value balance sheet for Payout is shown below. Liabilities and Equity $1, 000, 000 Assets Cash Fixed assets $150, 000 Equity 850, 000 So far, price of the share today is $50 per share and it will sell at $49 per share for tomorrow. Now suppose that Payout announces its intention to repurchase $20,000 worth of stock instead of paying out the dividend. a. What effect will the repurchase have on an investor who currently holds 200 shares and sells 4 of those shares back to the company in the repurchase? Total value of the position b. What effect will the initial cash dividend payment have on the same investor? Total value of the position