Question 22

BJs Auto Group has 25,000 shares of stock outstanding at a market price of $14.50 a share. What will be the market price per share if the company does a 2-for-5 reverse stock split?

	$14.50
	$6.40
	$29.50
	$36.25
	$5.80

Question 21

Alicia purchased 100 shares of GT stock on Wednesday, July 7th. Nick purchased 100 shares of GT, stock on Thursday, July 8th. GT declared a dividend on June 20th to shareholders of record on July 12th and payable on August 1st. Which one of the following statements concerning the dividend paid on August 1st is correct given this information?

	Neither Alicia nor Nick are entitled to the dividend.
	Nick is entitled to the dividend but Alicia is not.
	Alicia is entitled to the dividend but Nick is not.
	Both Alicia and Nick are entitled to the dividend.
	Both Alicia and Nick are entitled to a prorata share of the dividend.

Question 19

You currently own 200 shares of Hanover Co. The stock closed at a price of $22.38 a share today. Tomorrow morning a 10 percent stock dividend will occur. What will be the change in the value of your investment tomorrow assuming there are no other factors affecting the market price of the stock?

	$0
	-$447.60
	$447.60
	-$2.24
	$2.24

Question 18

A common stock is selling for $63 a share. The par value per share is $1and the total market value of the firm is $94,500. How many shares of stock will be outstanding if the firm does a 3-for-1 stock split?

	500 shares
	1,000 shares
	3,000 shares
	3,500 shares
	4,500 shares

Question 13

Robinson's has 15,000 shares of stock outstanding with a par value of $1 per share and a market price of $25.50 a share. The balance sheet shows $15,000 in the common stock account, $325,000 in the capital in excess of par value account, and $189,000 in the retained earnings account. The firm just announced a 3-for-2 stock split. What will the market price per share be after the split?

	$17.00
	$24.00
	$38.25
	$40.50
	$38.06

Question 9

A firm has a market value equal to its book value. Currently, the firm has excess cash of $512 and other assets of $9,500. Equity is worth $6,400. The firm has 250 shares of stock outstanding and net income of $1,500. Assume the firm uses all of its excess cash for a stock repurchase. What will the price per share be after the repurchase?

	$25.60
	$27.83
	$28.08
	$24.19
	$25.25

Question 7

You own 100 shares of MXR stock. The company plans on issuing a dividend of $.50 a share one year from today, $.85 a share two years from today, and then a final liquidating dividend of $12.60 a share three years from today. Your required rate of return on this stock is 16 percent. Ignoring taxes, what is the value of one share of this stock to you today?

	$9.14
	$12.03
	$11.25
	$10.60
	$10.47

Question 5

Which of these were identified as the two drawbacks of a fixed repurchase strategy? I. The repurchase could be a negative net present value investment. II. Lack of a monitoring mechanism to ensure the repurchase was completed. III. The extra tax burden the strategy places on shareholders. IV. The increased agency problems that result from such a strategy.

	I and II only
	II and III only
	I, III, and IV only
	II, III, and IV only
	I, II, III, and IV