Homework Answers
Answer: The correct option is $10
In the question, 1 for 5 refers to a reverse stock split. It
means merging 5 existing stocks into one new stock.
So, before merging, the stock price =50/5=10
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Question 3 The value of a share of stock currently selling for $50 after a 1 for 5 split is: $10 $200 $250 $500
The value of a share of stock currently selling for $50 after a 1 for 5...
The value of a share of stock currently selling for $50 after a 1 for 5 split is
An investor owns 300 shares of stock currently selling for $70 per share. After a 3-for-2...
An investor owns 300 shares of stock currently selling for $70 per share. After a 3-for-2 stock split, the investor will have: Multiple Choice 200 shares selling for $93.10 each. 200 shares selling for $105.00 each. 450 shares selling for $46.67 each. 450 shares selling for $93.10 each.
Stock Split JPix management is considering a stock split. JPix currently sells for $96 per share...
Stock Split JPix management is considering a stock split. JPix currently sells for $96 per share and a 3-for-2 stock split is contemplated. What will be the company's stock price following the stock split, assuming that the split has no effect on the total market value of JPix's equity? Round your answer to the nearest dollar. $
Grill Works has 5 percent preferred stock outstanding that is currently selling for $50 a share....
Grill Works has 5 percent preferred stock outstanding that is currently selling for $50 a share. The market rate of return is 14 percent and the firm's tax rate is 35 percent. What is the firm's cost of preferred stock? (assume face value of the preferred stock=$100) 14.54 percent 13.67 percent 10.00 percent 14 percent 14.29 percent
Question 19 Colemans common stock is currently selling for $50 share. Its last dividend (Do) was...
Question 19 Colemans common stock is currently selling for $50 share. Its last dividend (Do) was $4.19; and dividends are expected to grow at a constant rate of 5 percent in the foreseeable future. Coleman estimates that if it issues new common stock, the flotation cost will be 10 percent. Coleman incorporates the flotation costs into the DCF approach. What is the estimated cost of newly issued common stock, considering the flotation cost?
Question 9 The common stock of Indigo Inc. is currently selling at $114 per share. The...
Question 9 The common stock of Indigo Inc. is currently selling at $114 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is $10; book value is $69 per share. 9.70 million shares are issued and outstanding. Prepare the necessary journal entries assuming the following. (Enter amounts in dollars. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no...
JPix management is considering a stock split. JPix currently sells for $102 per share and a...
JPix management is considering a stock split. JPix currently sells for $102 per share and a 3-for-1 stock split is contemplated. What will be the company's stock price following the stock split, assuming that the split has no effect on the total market value of JPix's equity? Round your answer to the nearest dollar.
The common stock of Margot, Inc. is selling for $65 a share. The par value per...
The common stock of Margot, Inc. is selling for $65 a share. The par value per share is $1. Currently, the firm has a total market value of $93317. How many shares of stock will be outstanding if the firm does a 5-for-2 stock split? (Round answer to 0 decimal places, do not round intermediate calculations)
Stock split versus stock dividend—Firm Mammoth Corporation is considering a? 3-for-2 stock split. It currently has...
Stock split versus stock
dividend—Firm
Mammoth Corporation is considering a? 3-for-2 stock split. It
currently has the? stockholders' equity position shown. The current
stock price is? $120 per share. The most recent? period's earnings
available for common stock is included in retained earnings.
a. What effect on? Mammoth's equity account
would result from the stock split?
b. What change in stock price would you expect
to result from the stock? split?
c. What is the maximum cash dividend per share...
Builtrite stock is currently selling for $40 a share. You purchase 200 shares and later the...
Builtrite stock is currently selling for $40 a share. You purchase 200 shares and later the stock is selling for $52 a share. What stock price would trigger a margin call (using 25%)? Group of answer choices $21.33 $42.67 $32.00 $64.00
Question 19 Colemans common stock is currently selling for $50 share. Its last dividend (Do) was $4.19; and dividends are expected to grow at a constant rate of 5 percent in the foreseeable future. Coleman estimates that if it issues new common stock, the flotation cost will be 10 percent. Coleman incorporates the flotation costs into the DCF approach. What is the estimated cost of newly issued common stock, considering the flotation cost?
Question 9 The common stock of Indigo Inc. is currently selling at $114 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is $10; book value is $69 per share. 9.70 million shares are issued and outstanding. Prepare the necessary journal entries assuming the following. (Enter amounts in dollars. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no...
Stock split versus stock
dividend—Firm
Mammoth Corporation is considering a? 3-for-2 stock split. It
currently has the? stockholders' equity position shown. The current
stock price is? $120 per share. The most recent? period's earnings
available for common stock is included in retained earnings.
a. What effect on? Mammoth's equity account
would result from the stock split?
b. What change in stock price would you expect
to result from the stock? split?
c. What is the maximum cash dividend per share...
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