Simpson Pharmaceuticals has done very well in the stock market during the last three years. Its stock has risen from $123 per share to $176.41 per share. Its P/E ratio is 23. Its current statement of net worth is:

Common Stock (3 million shares issued; 13 million shares authorized) $23,000,000 Retained Earnings 77,000,000 Net Worth $100,000,000 Required: 1.) What changes would occur in the statement of net worth after a two-for-one stock split? 2.) What would the statement of net worth look like after a four-for-one stock split? 3.) Assume Simpson earned $23 million. What would its EPS be before and after the two-for- one stock split and the four-for-one stock split? 4.) Whatwouldthepricepersharebebeforeandafterthetwo-for-oneandthefour-for-one stock splits? (Assume the P/E ratio of 23 stays the same.) 5.) Should a stock split change the P/E ratio for Simpson?