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Please answer all questions 5,6,7 and 8 As soon as possible ! Q5. Stock Splits and Consolidations. a) An investor owns 100 shares of Nanaimo

Please answer all questions 5,6,7 and 8 As soon as possible !
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Q5. Stock Splits and Consolidations. a) An investor owns 100 shares of Nanaimo Biscuits that trades on the TSX at $40 a share. Nanaimo declares a 2-for-1 stock split. "What is the value of each share and the value of the investor's portfolio after the split? SHOW YOUR WORK. b) An investor owns 1,000 shares of Bacario Biscuits that trades on the TSX Venture at $0.40 a share. Bacario, declares a 1-for-10 reverse stock split. What is the value of each share, and the value of the investor's portfolio after the reverse split? SHOW YOUR WORK. Q6. ABC Corp issues convertible preferreds with a $25 par value and a $2.50 annual dividend. The conversion ratio on the preferred is 3 (3 common stocks for each preferred share). The market price of the preferred is $32 and $10 for the common shares. a) What is the conversion value/price of the preferreds? b) What is the conversion premium? c) Would you convert your shares at this price? Q7. Suppose a 6% $25 par value retractable preferred is purchased at $24.25 and is retractable at the holder's option at $25 in 2 years and 6 months' rime. What is the pre-tax yield on this retractable? Q8. Describe the differences between an index and an average

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