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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: certificate of Sto $12
Companies sometimes consider stock splits to bring down the price so that the stock attracts more purchases. Consider the following case: certificate of Sto $12 Happy Monkey Manufacturing currently has 15,000 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 Happy Monkey Manufacturing declares a 4-for-1 stock split, what will be 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? If the firm pays a 6% stock dividend, how many shares will the firm issue to its existing shareholders? Scorecard Athletics Corp. is one of Happy Monkey's leading competitors. Scorecard Athletics Corp.'s market intelligence research team shares Happy Monkey's plans of announcing a stock split, influencing the distribution policy makers. Consequently, executives at Scorecard decide to offer stock dividends to its shareholders. 192,000 shares O 134,400 shares 153,600 shares 0 211,200 shares A stock dividend is another way of keeping the stock price from going too high. Scorecard currently has 3,200,000 shares of common stock outstanding
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