.

Stock Split Suppose you own 5,000 common shares of Laurence Incorporated. The EPS is $9.00, the DPS is $2.00, and the stock sells for $65 per share. Laurence announces a 2-for-1 split. Immediately after the split, how many shares will you have? Round your answer to the nearest whole number. shares What will the adjusted EPS and DPS be? Round your answers to the nearest cent. EPS: $ DPS: $ What would you expect the stock price to be? Round your answer to the nearest cent. $ Residual Distribution Policy Harris Company must set its investment and dividend policies for the coming year. It has three independent projects from which to choose, each of which requires a $4 million investment. These projects have different levels of risk, and therefore different costs of capital. Their projected IRRs and costs of capital are as follows: Project A: Cost of capital = 16%; IRR = 18% Project B: Cost of capital = 14%; IRR - 10% Project C: Cost of capital - 6%; IRR = 9% Harris intends to maintain its 40% debt and 60% common equity capital structure, and its net income is expected to be $12,000,000. If Harris maintains its residual dividend policy (with all distributions in the form of dividends), what will its payout ratio be? Round your answer to two decimal places. % Stock Split Suppose you own 5,000 common shares of Laurence Incorporated. The EPS is $9.00, the DPS is $2.00, and the stock sells for $65 per share. Laurence announces a 2-for-1 split. Immediately after the split, how many shares will you have? Round your answer to the nearest whole number. shares What will the adjusted EPS and DPS be? Round your answers to the nearest cent. EPS: $ DPS: $ What would you expect the stock price to be? Round your answer to the nearest cent. $ Residual Distribution Policy Harris Company must set its investment and dividend policies for the coming year. It has three independent projects from which to choose, each of which requires a $4 million investment. These projects have different levels of risk, and therefore different costs of capital. Their projected IRRs and costs of capital are as follows: Project A: Cost of capital = 16%; IRR = 18% Project B: Cost of capital = 14%; IRR - 10% Project C: Cost of capital - 6%; IRR = 9% Harris intends to maintain its 40% debt and 60% common equity capital structure, and its net income is expected to be $12,000,000. If Harris maintains its residual dividend policy (with all distributions in the form of dividends), what will its payout ratio be? Round your answer to two decimal places. %