Question
The Strasburg Companys stock currently trades at $90 per share and the firm has 1,500,000 shares outstanding. The company is considering a 3 for 2
The Strasburg Companys stock currently trades at $90 per share and the firm has 1,500,000 shares outstanding.
The company is considering a 3 for 2 stock split. What will be the companys stock price following the stock split? How many shares will be outstanding? Discuss the impact on the firms balance sheet. (3 marks)
If instead of the stock split, the company does a 7% stock dividend. What will be the companys stock price following the stock dividend? How many shares will be outstanding? Discuss the impact on the firms balance sheet. (3 marks)
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School Finance A Policy Perspective
Authors: Allan Odden, Lawrence Picus
5th Edition
0078110289, 978-0078110283
