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Question 6 George is working for FreshFruit Imports Lta. The firm is gaing to pay a stock dividend by splitting their shares with the ratio

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Question 6 George is working for FreshFruit Imports Lta. The firm is gaing to pay a stock dividend by splitting their shares with the ratio of 4 to 3. The firm has 210,000 outstanding common shares, a P/E ratio of 18.5 and $325,000 net income available for common shareholders. George currently owns 1,000 shares of his company. Required: a) If the market price of the FreshFruit lmports Led's share 2 months after splitting baunced back to the level before splitting, calculate the increase in the total market capitalisation of the firm and total value of George's shareholting- (4 marks) ANSWER a): b) FreshFruit Imports Ltd. is Boing to tramser a payment of AUD 475,000 to a partner in Switzerland to pay for their imports. If the dirett quete of Swiss Frant in Sydney is 1.45, how much in lacal currency will the Swiss partner will receive? 13 marks)

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