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Companies sometimes consider stock splits to bring down the price so that the stock attracts more purchases. Consider the following case: Mainway Toy Company currently

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Companies sometimes consider stock splits to bring down the price so that the stock attracts more purchases. Consider the following case: Mainway Toy Company currently has 25,000 shares of common stock outstanding. Its management believes that its current stock price of $110 per share is too high. The company is planning to conduct stock splits in the ratio of 4 for 1 as described in the animation If Mairway Toy Company declares a 4-for-1 stock split, the price of the company's stock after the split, assuming that the total value of the firm's stock remains the same after the split? Hackworth Hardware Company is one of Mainway's leading competitors. Hackworth Hardware Company's market intelligence research team shares Mainway's plans of announcing a stock split, Influencing the distribution policy makers. Consequently, executives at Hackworth decide to offer stock dividends to its shareholders. A stock dividend is another way of keeping the stock price from going too high. Hackworth currently has 3,200,000 shares of common stock outstanding. If the firm pays a 6% stock dividend, how many shares will the firm issue to its existing shareholders? 153,600 shares 192,000 shares 163,200 shares 211,200 shares If Mainway Toy Company declares a 4-for-1 stock split, the price of the company's stock after the split, assuming that the total value of the firm's stock remains the same after the split? Hackworth Hardware Company is one o $27.50 leading competitors. Hackworth Hardware Company's market intelligence research team shares Mainway's plans or announcing a stock $440.00 hing the distribution policy makers. Consequently, executives at Hackworth decide to offer stock dividends to its shareholders $36.67 A stock dividend is another way of knep price from going too high. Hackworth currently has 3,200,000 shares of common stock $55.00 outstanding $220.00 If the firm pays a 6% stock dividend, how many Whares will the firm issue to its existing shareholders? 153,600 shares 192,000 shares 163,200 shares 211,200 shares

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