Split Co. is an all equity firm with 50,000 shares outstanding trading at a price of $100/share. At its most recent board meeting it was agreed to:

• Issue a 4-for-1 stock split with an ex-dividend date of 1 May;
• Issue a $1.25/share cash dividend with an ex-dividend date of 1 June;
• Issue $900,000 of debt in order to repurchases shares during the month of June.

Ignoring taxes and assuming there are no other events which impact the firms share price over this time period.

a) What is the current value of the firm;

b) As of 1 May, what will be: i) the number of shares outstanding; ii) the share price; and, iii) the total value of the firm;

c) As of 1 June what will be: i) the number of shares outstanding; ii) the share price; and, iii) the total value of the firm;

d) As of 30 June what will be: i) the number of shares outstanding; ii) the share price; and, iii) the total value of the firm;