Jersey Medical earns $11.50 a share, sells for $90, and pays a $8 per share dividend. The stock is split two for one and a $4 per share cash dividend is declared. What will be the new price of the stock? Round your answer to the nearest dollar. $ 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: %

Jersey Medical earns $11.50 a share, sells for $90, and pays a $8 per share dividend. The stock is split two for one and a $4 per share cash dividend is declared. What will be the new price of the stock? Round your answer to the nearest dollar. $ 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: %

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter11: The Cost Of Capital

Section: Chapter Questions

Problem 10PROB

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