Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 8 A firm currently has 200,000 shares of stock outstanding at a market price per share of $60. Today, the firm announced a 3-for-1
Question 8
A firm currently has 200,000 shares of stock outstanding at a market price per share of $60. Today, the firm announced a 3-for-1 stock split. What will the price per share be after the split?
| $10.00 | |
| $20.00 | |
| $40.00 | |
| $60.00 |
Question 9
A firm has 50,000 shares of stock outstanding, net income of $100,000, and a PE ratio of 15. What will the firm's PE ratio be if the firm issues additional 10,000 new shares? Assume all else remains constant.
| 12.0 | |
| 13.0 | |
| 15.0 | |
| 18.0 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started