Intermediate Financial Management
14th Edition
ISBN: 9780357516782
Author: Brigham, Eugene F., Daves, Phillip R.
Publisher: Cengage Learning
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Textbook Question
Chapter 15, Problem 7P
Stock Split
Suppose you own 2,000 common shares of Laurence Incorporated. The EPS is $10.00, the DPS is $3.00, and the stock sells for $80 per share. Laurence announces a 2-for-1 split. Immediately after the split, how many shares will you have, what will the adjusted EPS and DPS be, and what would you expect the stock price to be?
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Stock Split
Suppose you own 5,000 common shares
of Laurence Incorporated. The EPS is
$8.00, the DPS is $5.00, and the stock
sells for $65 per share. Laurence
announces a 2-for-1 split. Immediately
after the split, how many shares will you
have? Round your answer to the nearest
whole number.
shares
What will the adjusted EPS and DPS be?
Round your answers to the nearest cent.
EPS: $
DPS: $
What would you expect the stock price
to be? Round your answer to the nearest
cent.
A
Suppose you own 2,000 common shares of Laurence Incorporated. The EPSis $10.00, the DPS is $3.00, and the stock sells for $80 per share. Laurenceannounces a 2-for-1 split. Immediately after the split, how many shareswill you have, what will the adjusted EPS and DPS be, and what would youexpect the stock price to be?
Suppose you own 1,000 common shares of Laurence Incorporated. The EPS is $12.00, the DPS is $5.00, and the stock sells for $75 per share. Laurence announces a 2-for-1 split. Immediately after the split, how many shares will you have? Round your answer to the nearest whole number.
shares
What will the adjusted EPS and DPS be? Round your answers to the nearest cent.
EPS: $
DPS: $
What would you expect the stock price to be? Round your answer to the nearest cent.
Chapter 15 Solutions
Intermediate Financial Management
Ch. 15 - Define each of the following terms: a. Optimal...Ch. 15 - How would each of the following changes tend to...Ch. 15 - What is the difference between a stock dividend...Ch. 15 - One position expressed in the financial literature...Ch. 15 - Indicate whether the following statements are true...Ch. 15 - Prob. 1PCh. 15 - Prob. 2PCh. 15 - Dividend Payout
The Wei Corporation expects next...Ch. 15 - Prob. 4PCh. 15 - Prob. 5P
Ch. 15 - Prob. 6PCh. 15 - Stock Split
Suppose you own 2,000 common shares of...Ch. 15 - Stock Split Fauver Enterprises declared a 3-for-1...Ch. 15 - Residual Distribution Policy Harris Company must...Ch. 15 - Prob. 11PCh. 15 - Prob. 12PCh. 15 - Integrated Waveguide Technologies (IWT) is a...Ch. 15 - Prob. 2MCCh. 15 - Assume that IWT has completed its IPO and has a...Ch. 15 - Prob. 4MCCh. 15 - Prob. 5MCCh. 15 - Suppose IWT has decided to distribute $50 million,...Ch. 15 - Prob. 7MCCh. 15 - Prob. 8MCCh. 15 - Prob. 9MC
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