Question
Rajesh Exports ltd. shares are trading at Rs. 8,000 per share. Firm is considering stock split in the ratio of 4: 1. Explain how the
Rajesh Exports ltd. shares are trading at Rs. 8,000 per share. Firm is considering stock split in the ratio of 4: 1. Explain how the balance sheet and the share price of the firm will be impacted after the stock split. Following is the balance sheet of Rajesh Exports.
Balance Sheet as on 31st March, 2020
| a | Amount (in Rs.) | Assets | Amount (in Rs.) |
| Share Capital (1000000 Equity Shares of Rs. 10 each) | 1,00,00,000 | Fixed Assets | 2,00,00,000 |
| Reserve and Surplus | 2,50,00,000 | Current Assets (inclusive of cash Rs. 1,00,000) | 1,50,00,000 |
| Total | 3,50,00,000 | Total | 3,50,00,000 |
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Short Term Financial Management
Authors: Ned C. Hill, William L. Sartoris
3rd Edition
0023548320, 978-0023548321
