Question
(4) (Stock split) Templeton Care Facilities, Inc. was contemplating a stock dividend. The firm's stock price had risen over the last three years and was
(4) (Stock split)Templeton Care Facilities, Inc. was contemplating a stock dividend. The firm's stock price had risen over the last three years and was trading at $150 per share. The firm's board of directors felt that the trading range should be around $50 to $100, so they were initially considering a stock dividend that, other things remaining the same, would result in a $50 share price. On second thought, the firm's board of directors decided to use a stock split rather than a stock dividend, how many new shares should the firm issue for each outstanding share?
1. The necessary stock split factor is _____. (Round to the nearest integer.)
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