5. Assume Aquidneck Digital Solutions, which has ten million shares outstanding, is trading for $20. In this case, the firm's total market value, or market capitalization, is $200 million (10 million shares x $20/share). (10 points) After a two-for-one stock split, the firm's number of shares will (increase/decrease) to ______ million, while the value of those shares will (increase/decrease) to $______. The company's total market capitalization will (increase/decrease/remain the same) at $______ million (_____ million shares x $______/share).

6. A board of directors decides to split the companys stock, and issue new shares to all shareholders in the same proportion. In a 5-for-2 stock split, you will receive five additional shares for every two shares you own. The value of your investment does not change because the price per share is adjusted to compensate. (5 points) Suppose you own 100 shares at $20 per share, worth $2,000. After the 5-for-2 split, you have ______ shares at $______ per share, also equal to___.

7. Research the P/E ratios for two equity purchases from our Morgan Stanley portfolio. What are the P/E ratios? (15 points total a, b, c = 5 points each) a. Stock 1 Name _______ Stock 1 P/E ratio ________ Stock 2 Name _______ Stock 2 P/E ratio ________ b. Identify a competitor for each company and its P/E ratio. Stock 1 Competitor Name _______ Stock 1 Competitor P/E ratio ________ Stock 2 Competitor Name _______ Stock 2 Competitor P/E ratio ________ c. Compare one of the stocks P/E and its competitor. Briefly (2-3 sentences) analyze each P/E comparison (one selected stock and its competitor).