Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help! Wilson Pharmaceuticals' stock has done very well in the market during the last three years. It has risen from $ 7 5 to

please help!
Wilson Pharmaceuticals' stock has done very well in the market during the last three years. It has risen from $75 to $100 per
share. The firm's current statement of stockholders' equity is as follows:
a-1. How many shares would be outstanding after a two-for-one stock split?
Note: Do not round intermediate calculations. Input your answer in millions (e.g., $1.23 million should be entered as "1.23").
a-2. What would be its par value?
Note: Do not round intermediate calculations and round your answer to 2 decimal places.
Par value
b-1. How many shares would be outstanding after a three-for-one stock split?
b-2. what would be its per value?
c. assume that wilson earned $15 million. what would its earnings per share be before and after the two-for-one stock split? after the three-for-one stock split?
d. what would be the price per share after the two-for-one stock split? after the three-for-one stock split? (assume that the price earnings ratio of 33.33 stays the same)
image text in transcribed

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

Step: 3

blur-text-image

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

Intermediate Financial Management

Authors: Eugene F. Brigham, Louis C. Gapenski

4th Edition

0030754828, 978-0030754821

More Books

Students also viewed these Finance questions

Question

What do you believe was the cause of the turnover problem?

Answered: 1 week ago