Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the case of Cold Duck Manufacturing Inc.: Cold Duck Manufacturing the currently has 30,000 shares of common stock outstanding its management believes that is

image text in transcribed

Consider the case of Cold Duck Manufacturing Inc.: Cold Duck Manufacturing the currently has 30,000 shares of common stock outstanding its management believes that is current stock price of $90 per share too high. The company is planning to conduct a for stock split. 1 Cold Duck Manufacturing Inc, declares a 4-for-1 stock split, what will be the price of the company's stock after the split asuming that the tota value of the firm's stock remains the same before and after the split-should be per share The Andre Group is one of Cold Duck's leading competitors Andre's market i nce research team has learned of Cold Duck's stock spit plans, and is considering paying a stock dividend to its own shareholders. As a result, executives at Andre decide to offer stock dividend to its warenolders The Andre Group currently has 3,300.000 shares of common stock outstanding If Andre pays a stock dividend, how many total shares of common stock will be outstanding after the stock dividend? 3.207,600 shares 3,564,000 shares 4,098,600 shares 1,742 200 shares

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investment Analysis and Portfolio Management

Authors: Frank K. Reilly, Keith C. Brown

10th Edition

538482109, 1133711774, 538482389, 9780538482103, 9781133711773, 978-0538482387

More Books

Students also viewed these Finance questions

Question

1. What did you do to try to conceal your nerves?

Answered: 1 week ago