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Dutch Tulips Co has 1.5 million ordinary shares that are listed on the ASX. The current price of its shares is $263.85. The financial managers
Dutch Tulips Co has 1.5 million ordinary shares that are listed on the ASX. The current price of its shares is $263.85. The financial managers are considering undergoing a 5-for-3 stock split to increase the appeal of their company's shares. Which one of the following statements is correct? a. The total number of shares on issue would be 4 million shares (from 1.5 million existing shares + 2.5 million new shares created) O b. There would be no fundamental change in the asset value of the company, so there would be no change to the share price of Dutch Tulips Co O c. There would be 1 million more shares on issue and the theoretical ex-split share price would be $439.75 O d. None of the options are correct 4 O e. The theoretical ex-split share price would be $158.31 and with 2.5 million 7 Fin
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