What is the answers and the working Jersey Medical earns $10.00 a share, sells for $100, and pays a $4 per share dividend. The stock is split four for one and a $1 per share cash dividend is declared.a. What will be the new price of the stock? Round your answer to the nearest dollar.$b. If the firm's total earnings do not change, what is the payout ratio before and after the stock split? Round your answers to one decimal place.Payout ratio before the split:Payout ratio after the split:%%

Stock split means to increase the number of the company's outstanding shares and decrease the value…

Answered: Jersey Medical earns $10.00 a share,…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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