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