The split ratio which is required to bring the stock price down to $50. Introduction: Stock split is expressed in terms of ratios and not in percentage. A single share is divided into additional shares, once the company declares a stock split.

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Answer 1

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Chapter 17, Problem 31P

Summary Introduction

To determine: The split ratio which is required to bring the stock price down to $50.

Introduction:

Stock split is expressed in terms of ratios and not in percentage. A single share is divided into additional shares, once the company declares a stock split.

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Suppose you have 100 common shares of Tillman Industries. The EPS is $4.00, theDPS is $2.00, and the stock sells for $60 per share. Now Tillman announces a twofor-one split. Immediately after the split, how many shares will you have, what willbe the adjusted EPS and DPS, and what would you expect the stock price to be?

Jersey Medical earns $12.50 a share, sells for $100, and pays a $6 per share dividend. The stock is split two for one and a $3 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: % %

A) What will be the number of shares outstanding after the split? B) If the common stock had a market price of $210 per share before the stock split, what would be an approximate market price per share after the split?

Answer 2

Question

Chapter 17, Problem 31P

Summary Introduction

To determine: The split ratio which is required to bring the stock price down to $50.

Introduction:

Stock split is expressed in terms of ratios and not in percentage. A single share is divided into additional shares, once the company declares a stock split.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Chapter 17, Problem 31P

Summary Introduction

To determine: The split ratio which is required to bring the stock price down to $50.

Introduction:

Stock split is expressed in terms of ratios and not in percentage. A single share is divided into additional shares, once the company declares a stock split.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Chapter 17, Problem 31P

Summary Introduction

To determine: The split ratio which is required to bring the stock price down to $50.

Introduction:

Stock split is expressed in terms of ratios and not in percentage. A single share is divided into additional shares, once the company declares a stock split.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 17, Problem 31P

Summary Introduction

To determine: The split ratio which is required to bring the stock price down to $50.

Introduction:

Stock split is expressed in terms of ratios and not in percentage. A single share is divided into additional shares, once the company declares a stock split.

Answer 6

Chapter 17, Problem 31P

Summary Introduction

To determine: The split ratio which is required to bring the stock price down to $50.

Introduction:

Stock split is expressed in terms of ratios and not in percentage. A single share is divided into additional shares, once the company declares a stock split.

Answer 7

Chapter 17, Problem 31P

Summary Introduction

To determine: The split ratio which is required to bring the stock price down to $50.

Introduction:

Stock split is expressed in terms of ratios and not in percentage. A single share is divided into additional shares, once the company declares a stock split.

Answer 8

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Answer 11

Ch. 17.1 - Prob. 1CC Ch. 17.1 - Prob. 2CC Ch. 17.2 - Prob. 1CC Ch. 17.2 - In a perfect capital market, how important is the...Ch. 17.3 - Prob. 1CC Ch. 17.3 - Prob. 2CC Ch. 17.4 - Prob. 1CC Ch. 17.4 - Prob. 2CC Ch. 17.5 - Is there an advantage for a firm to retain its...Ch. 17.5 - Prob. 2CC

The split ratio which is required to bring the stock price down to $50. Introduction: Stock split is expressed in terms of ratios and not in percentage. A single share is divided into additional shares, once the company declares a stock split.

Solution Summary: The author explains the split ratio required to bring the stock price down to 50.

Concept explainers

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To determine: The split ratio which is required to bring the stock price down to $50.

Introduction:

Stock split is expressed in terms of ratios and not in percentage. A single share is divided into additional shares, once the company declares a stock split.

Want to see the full answer?

Chapter 17 Solutions

The split ratio which is required to bring the stock price down to $50. Introduction: Stock split is expressed in terms of ratios and not in percentage. A single share is divided into additional shares, once the company declares a stock split.

Solution Summary: The author explains the split ratio required to bring the stock price down to 50.

Concept explainers

Videos

To determine: The split ratio which is required to bring the stock price down to $50. Introduction: Stock split is expressed in terms of ratios and not in percentage. A single share is divided into additional shares, once the company declares a stock split.

Want to see the full answer?

Chapter 17 Solutions

To determine: The split ratio which is required to bring the stock price down to $50.

Introduction:

Stock split is expressed in terms of ratios and not in percentage. A single share is divided into additional shares, once the company declares a stock split.