Question $3$

A company has no liabilities, and its total assets have a market value of $$185,280.$ The company has

just declared a total dividend of $$32,110$ to equity holders. The stock goes ex$-$dividend tomorrow. The

number of outstanding shares is $21,700.$ What is the share price after the dividend?

$$8\mathrm{.}54$

$$4\mathrm{.}27$

$$7\mathrm{.}06$

$$10\mathrm{.}02$

Question $4$

A company currently has $5,000,000$ shares outstanding and its stock is currently trading at $$40$ per

share. Assuming the company issues a $5$ for $2$ stock split, the new share price and number of shares

outstanding following the split will be closest to:

$$40\mathrm{.}00$ and $5,000,000$

$$20\mathrm{.}00$ and $10,000,000$

$$16\mathrm{.}00$ and $12,500,000$

$$32\mathrm{.}00$ and $6,250,000$