Question
a. Assume ConEd has 1000 shares of stock outstanding and the current market price is $200 per share. To adjust their stock price, ConEd executes
a. Assume ConEd has 1000 shares of stock outstanding and the current market price is $200 per share. To adjust their stock price, ConEd executes a 4-for-1 stock split. How many shares should ConEd now have outstanding and what should be the stock price?
b. Managers of Koch Industries believe prospects for the company are very positive. They dont believe the investing public has yet figured out how bright their prospects are. Koch is about to go to the capital markets to raise capital. Are they more likely to issue long-term bonds or common stock? Explain briefly.
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