Three

ABC firm has encountered the following:

BEFORE SPLIT

Shares outstanding 300,000

Price/share $45

Dividend per share $1.8

Net Income $624,000

The firm had announced a 3-for-1 stock split

Required: Use the above give to answer questions 15 through 20

15- Before split, how much is the firms total common equity? *

$15,000,000

$13,000,000

$14,440,000

$12,000,000

None of the above

16- Before split, how much is the firms total dividends? *

$480,000

$360,000

$540,000

$630,000

None of the above

17- After split, how much is the firms dividend per share? *

$5.4

$0.9

$1.2

$2.4

None of the above

18- After split, how much is the firms Earnings Per Share (EPS)? *

$2.08

$0.69

$0.60

$0.35

None of the above

19- Assume that after making a specific split the companys price per share turned to be traded at $11.25, then how its EPS after split will change compared to its EPS before the split: *

Decrease $33.75

Decrease $1.56

Decrease $0.86

Decrease $0.52

None of the above

20- Assume that after making a specific split the Dividend per share of the company turned to be $0.72, then the value of the total dividends that the company will pay after the stock split is: *

$520,000

$540,000

$560,000

Can't be determined

None of the above