Last year, a company had 400,000 outstanding shares and recently completed a 5-for-2 stock split. Its stock was selling for $75 per share before the split.

What will be the new number of outstanding shares and the stock's price following the split, if the firm's value increased by 10% as a result of improved liquidity? *

5 points

1,000,000 outstanding shares; PPS = $30.00

1,000,000 outstanding shares; PPS = $33.00

160,000 outstanding shares; PPS = $187.50

160,000 outstanding shares; PPS = $168.75

8) If this years dividend per share is $3, and the total dividend payout represents a 9% increase over last years presplit total dividend payout. What was last years dividend per share? *

5 points

$6.88

$7.50

$1.20

$1.10