Question 5 (1 point)

A company achieves a net profit of $ 150,000 and distributes 50% of that profit in dividends. She currently has 100,000 common shares outstanding. It has just split its common stock in a 3 to 2 ratio, in order to make more accessible the stock which currently sells for $ 415. All other things being equal, what will the dividend per share be after this split?

Question 5 options:

$ 1.50

$ 0.50

$ 0.75

$ 0.25

$ 1.25

Question 6 (1 point)

A company currently owns 300,000 shares priced at $ 110 per share. If there is neither market imperfection, nor tax. What will the share price be after a stock split from seven to eight?

Question 6 options:

$ 38.50

$ 28.00

$ 96.25

$ 68.00

$ 125.71