Use the information for the question(s) below.

Luther Industries currently has 5 million shares outstanding and it stock is currently trading at $40 per share.

3) Assuming Luther issues a 25% stock dividend, then Luther's new share price is closest to:

A) $24.00

B) $30.00

C) $16.00

D) $32.00

Answer: Explanation:

4) Assuming Luther issues a 5:2 stock split, then Luther's new share price is closest to:

A) $32.00

B) $16.00

C) $24.00

D) $30.00

Answer: Explanation:

5) Assuming Luther issues a 5:2 stock split, then the number of shares Luther will have outstanding following the split is closest to:

A) 25.0 million

B) 12.5 million

C) 2.0 million

D) 16.0 million

Answer: Explanation:

6) Delta Products has decided to spin-off one of its subsidiaries, Gamma Technologies. Each Delta shareholder will receive 0.125 shares of Gamma for each share of Delta they own. Delta's price is $35.00 cum-dividend and immediately after the spin-off Gamma Technologies was trading for $24.00 per share. In a perfect capital market, what would Delta Product's ex-dividend share price be after this transaction?

Answer: