Stock splits are given for all the reasons EXCEPT for in increases the number of outstanding shares which lowers the per share stock price O shows management's confidence that the company is doing well and will continue to do well O it keeps the market price of the stock affordable it increases the market price of the stock 79°F R

Stock splits are given for all the reasons EXCEPT for in increases the number of outstanding shares which lowers the per share stock price O shows management's confidence that the company is doing well and will continue to do well O it keeps the market price of the stock affordable it increases the market price of the stock 79°F R

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter15: Distributions To Shareholders: Dividends And Repurchases

Section: Chapter Questions

Problem 5P

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Presently, your company’s Face Value of Equity Share RO 10 and Market Value of your Share in MSM is RO 25 per share. In order to increase the trading volume and market liquidity of your company stock, will you suggest the management to go for stock split? Explain your management about concept of stock slip with the advantage of splitting the stock of your company with the current scenario.
What is the Poitrowski score? What are the characteristics of shares that are suitable to be assessed with the Piotrowski framework? 2. Discuss the attractiveness of Treynor Black methodology to an investor in developed market large and medium cap equities. 3. The stock market falls by 33 percent in one day: is this necessarily inconsistent with the market hypothesis? Explain your reasoning 4. New information hits a company share such that the share price rises from 100 pence to 120 pence and then the share price rises gradually over the following 6 months to 150 pence despite any further news. Is this evidence of market efficiency? Explain your reasoning.
The Big Container Company’s stock was trading by Rs. 90 per share, prior to the split. The company recently announced a 3-for-1 stock split. The split had no effect on the wealth of the company’s investors. What will be the new stock price?
Stock splits and stock dividends have the following effects on Total Stockholders' Equity: Select one: a. Stock Splits DECREASE | Stock Dividends DECREASE b. Stock Splits INCREASE | Stock Dividends NO CHANGE c. Stock Splits NO CHANGE | Stock Dividends DECREASE d. Stock Splits NO CHANGE | Stock Dividends NO CHANGE
A summary of two stocks is shown. 52W high 52W low Name of Stock Symbol High Low Close 37.18 29.39 Zycodec ZYO 39.06 32.73 34.95 11.76 7.89 Unix Co UNX 16.12 12.11 15.78 Last year, a stockholder purchased 25 shares of Zycodec at its lowest price of the year. What is the gain or loss if the stock is sold at the current closing price? The gain is $55.75. The loss is $55.75. The gain is $139.00. The loss is $139.00.
Flexsteel is giving out a large stock dividend. This would: A. Results in a transfer of retained earnings to the common stock account B. Reduces the par value per share by the percentage of the additional shares issued. C. Is accounted for in exactly the same manner as a stock split D. Results in a transfer of retained earnings to common stock and additional paid in capital
Shell Inc. is having a stock split. The current price is $57 per share, and you own 500 shares. The split is a one-and-one-half-shares-for-one share split. What is the expected per share price after the split? What is your wealth before and after the split? Based on empirical evidence, does the market value of outstanding shares (new price times new quantity) tend to increase or decrease on average when stocks split into a greater number (but lower priced) shares, as in this case
A 2-for-1 stock split is declared. In this case, which of the following statements is true? A. The retained earnings fall. B. The common stock account rises. C. The cash account declines. D. The par value of the common stock is reduced.
Which of the following results in increasing basic earnings per share? Select one: a. Paying more than carrying value to retire outstanding bonds. b. Issuing cumulative preferred stock. c. Repurchase of common shares. d. Issuing a 2:1 stock split. e. All of these increase basic earnings per share.
(iii) Presently, your company’s Face Value of Equity Share RO 10 and Market Value of your Share in MSM is RO 25 per share. In order to increase the trading volume and market liquidity of your company stock, will you suggest the management to go for stock split? Explain your management about concept of stock slip with the advantage of splitting the stock of your company with the current scenario. (iv) Given the current scenario COVID 19 and its impact on Cement sector in the near future, what are the factors that you consider affecting the dividend policy of your company? Critically evaluate and justify.
Which of the following statements is correct? Multiple Choice Penny stocks are the stocks of small companies that are priced below $1 per share. Restricted stocks are shares of stock issued to executives that have limitations on voting rights. The capital market line graphs the relationship between return and risk (beta). All of these choices are correct.
please respond to both questions. Stocks A and B have a dividend of $3. Stock A’s dividends are expected to grow at 3% forever. Dividends for Stock Dividends for Stock B are expected to remain at $3 forever. All else equal, which stock should have a higher price? A B A=B Not sure Company Dividend Yield Required Return Price Market Capitalization A 7% 10% $100 $1,000,000 B 7% 11% $10 $10,000,000 Which stock has the higher capital gain's yield? A B A=B Not sure