1)Sewell Enterprises earned $175 million last year and retained $145 million.

What is the payout ratio?(Round the final answer to 1 decimal place.)

2)Wilson Pharmaceuticals has done very well in the stock market during the last three years. Its stock has risen from $75 per share to $100 per share. Its P/E ratio is 33.33. Its current statement of net worth is:

Common stock (5 million shares issued;

10 million shares authorized) $61,000,000

Retained earnings 44,000,000

Net worth $105,000,000

a.How many shares would be outstanding after a two-for-one stock split?(Enter the answer in millions.)

Number of sharesmillion

b.How many shares would be outstanding after a three-for-one stock split?(Enter the answer in millions.)

Number of sharesmillion

c.Assume Wilson earned $15 million. What would its EPS be before and after the two-for-one stock split?(Round the final answers to 2 decimal places.)

EPS before split:$

EPS after 2:1 split$

EPS after 3:1 split

d.What would the price per share be before and after the two-for-one and the three-for-one stock splits? (Assume the P/E ratio of 33.33 stays the same.)(Do not round intermediate calculations. Round the final answers to 2 decimal places.)

Price after 2-1 split$

Price after 3-1 split$

e.Should a stock split change the P/E ratio for Wilson?