Suppose you have 1,000 common shares of Burnside Bakeries. The EPS is $6.00, the DPS is $3.00,
Question:
Suppose you have 1,000 common shares of Burnside Bakeries. The EPS is $6.00, the DPS is $3.00, and the stock sells for $90 per share. Burnside announces a 3-for-1 split. Immediately after the split, how many shares will you have? (3,000) What will the adjusted EPS and DPS be?
($2 and $1) What would you expect the stock price to be?
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Step by Step Answer:
To calculate the number of shares you will have after a 3for1 split we simply multi...View the full answer
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Related Book For 
Intermediate Financial Management
ISBN: 9781337395083
13th Edition
Authors: Eugene F. Brigham, Phillip R. Daves
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