Question
2. Landry Corporation has 10,000,000 shares outstanding at a price of $135 each. The firm has earnings per share (EPS) of $16.50 and pays a
2. Landry Corporation has 10,000,000 shares outstanding at a price of $135 each. The firm has earnings per share (EPS) of $16.50 and pays a dividend of $5.25 per share. The firm conducts a 3-for-1 stock split.
a. How many shares will be outstanding after the split? What will be the price of each share immediately after the split?
b. What will be the new EPS and dividend per share after the split?
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
