te and Jessica, on the advice of their next-door neighbor, recently purchased 500 shares of a small-capitalization Int ighbor told them that the stock was a "real money maker" because it recently had a two-for-one stock split and would cording to the neighbor, the company was expected to earn $1.07 per share and pay a $0.27 dividend next year. Pet pressed with the stock's performance the stock has underperformed the S&P 500 Index this year. Pete and Jessica vice. iestions Assuming that the stock actually splits two for one, how many shares will Pete and Jessica own? What will be the me ; split affect the value of their holdings? Was their neighbor correct in thinking that the stock split made the stock a "re Using the information provided, calculate the stock's P/E ratio. Would you classify this investment as a growth or valu Since Pete, in particular, is worried about the price of the stock, explain to him how and why corporate earnings are Should Pete and Jessica be using the S&P 500 Index as a benchmark for this stock? Why or why not? What bench Yesterday they received a cold call from a stockbroker wanting to sell them an initial public offering in a cable televisi ker promised a "no-lose guarantee." Should they invest with this type of broker? Name at least five things Pete and Jessica need to look out for when making stock investments. Assuming that the stock actually splits two for one, how many shares will Pete and Jessica own? er the two-for-one split, they will own shares. (Round to the nearest integer.) hat will be the market value of their stock after the split? e shares will be valued at $ (Round to the nearest dollar.) w will the split affect the value of their holdings? (Select the best choice below.) A. The market value will be cut in half after the stock split since this is a two-for-one split. B. The market value will remain the same before and after the stock split. C. The market value will double after the stock split since this is a two-for-one split