What was the primary motivation for Apple (and others) to undertake a stock split?To raise more cash for the company through increasing the number of shares on the marketTo make the price of their shares seem more affordable to investorsTo decrease their number of share outstanding in order to increase EPSO To raise more cash for the company through a stock issuanceQuestion 11What could be a major motivation for Walmart (and others) to undertake a share repurchase?O To purchase cheaper shares today and reissue later at a higher priceTo make their shares seem more affordable to investorsBecause they have no other options to use their cashO To get additional cash today in order to invest in other projects

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What was the primary motivation for Apple (and others) to undertake a stock split? O To raise more cash for the company through increasing the number of shares on the market O To make the price of their shares seem more affordable to investors O To decrease their number of share outstanding in order to increase EPS To raise more cash for the company through a stock issuance

What was the primary motivation for Apple (and others) to undertake a stock split? O To raise more cash for the company through increasing the number of shares on the market O To make the price of their shares seem more affordable to investors O To decrease their number of share outstanding in order to increase EPS To raise more cash for the company through a stock issuance

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation

Section: Chapter Questions

Problem 2Q

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Yesterday, Western Gas & Electric Co. released its 2018 annual report on the company's website. While reading the report for her boss, Claire came across several terms about which she was unsure. She leaned around the wall of her cubicle and asked her colleague, Alexis, for help. CLAIRE: Alexis, do you have a second to help me with my reading of Western G&E's annual report? I've come across several unfamiliar terms, and I want to make sure that I'm interpreting the data and management's comments correctly. For example, one of the footnotes to the financial statements uses "the book value of Western G&E's shares," and then in another place, it uses "Market Value Added." I've never encountered those terms before. Do you know what they're talking about? ALEXIS: Yes, I do. Let's see if we can make these terms make sense by talking through their meaning and their significance to investors. The term book value has several uses. It can refer to a single asset or the company as a whole. When…
If a company’s market price rises above the IPO price, does that suggest that the company left money on the table and thus received less for the shares than it should have received? If most companies do leave money on the table, does that indicate the IPO market is inefficient? explain