Question
Suppose you own 3,000 common shares of Laurence Incorporated. The EPS is $11.00, the DPS is $2.00, and the stock sells for $80 per share.
Suppose you own 3,000 common shares of Laurence Incorporated. The EPS is $11.00, the DPS is $2.00, and the stock sells for $80 per share. Laurence announces a 2-for-1 split. Immediately after the split, how many shares will you have?
What will the adjusted EPS and DPS be? Round your answers to the nearest cent.
What would you expect the stock price to be? Round your answer to the nearest cent.
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International Financial Management
Authors: Cheol Eun, Bruce G. Resnick
8th edition
125971778X, 978-1259717789
