Coldwater Fishery is considering a 1-for-4 reverse stock split. Its stock is currently selling for $15 per
Question:
Coldwater Fishery is considering a 1-for-4 reverse stock split. Its stock is currently selling for $15 per share. Coldwater plans to pay a dividend equal to $0.15 per share after the split.
But it would like to pay an equivalent dividend per share even if the split does not take place.
(a) What will the price of the stock be immediately after the stock split?
(b) What should the per share dividend be if Coldwater doesn’t split the stock?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Cfin4 Plus Coursemate Printed Access Card 2014
ISBN: 9781285434544
1st Student Edition
Authors: Scott Besley, Eugene F. Brigham
Question Posted: