Question
Suppose you own 4,000 shares of Davis, Inc. The EPS is $9.00 and dividends per share are $4.00. Currently, the stock sells for $150 per
Suppose you own 4,000 shares of Davis, Inc. The EPS is $9.00 and dividends per share are $4.00. Currently, the stock sells for $150 per share. Davis announces a 3-for-1 stock split. Immediately after the split, how many shares will you have, what will the adjusted EPS and DPS be, and what would you expect the stock price to be?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
