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4 shares 16 shares 32 shares 40 shares 160 shares Darden Inc. is contemplating a stock split. Darden's current stock price is $15.00 per share,
4 shares
16 shares
32 shares
40 shares
160 shares
Darden Inc. is contemplating a stock split. Darden's current stock price is $15.00 per share, and it is considering a 3-for-2 stock split. A stock split is supposed to the only an accounting change that doesn't affect a firm's value directly. If the firm's value is not a affected by the stock split, what is Darden's expected stock price after the split? $22.50 #30.00 $37.50 $42.50 $67.50 Researchers have observed that stock prices often react positively after stock splits. They argue that the stock split is a signal that the firm expects continued growth. If Darden's stock price results in a 5% increase in market capitalization, what is its expected stock price after the split? $30.00 $31.00 $37.50 $45.00 $67.50 One of Darden's managers has suggested an alternative to a stock split. He wants the company to pay a stock dividend to keep the stock price down. How many new shares would be awarded to an investor 400 shares if a 4% stock dividend were carried outStep by Step Solution
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