Wilson Pharmaceuticals has done very well in the stock market during the last three years. Its stock has risen from $$65$ per share to $$90$ per share. Its P$/$E ratio is $20\mathrm{.}79.$ Its current statement of net worth is:

Common stock $(3$ million shares issued;

$10$ million shares authorized$)$ $ $48,000,000$

Retained earnings $42,000,000$

Net worth $$90,000,000$

a$.$ How many shares would be outstanding after a two$-$for$-$one stock split? $($Enter the answer in millions.$)$

Number of shares

million

b$.$ How many shares would be outstanding after a three$-$for$-$one stock split? $($Enter the answer in millions.$)$

Number of shares

million

c$.$ Assume Wilson earned $$13$ million. What would its EPS be before and after the two$-$for$-$one stock split? $($Round the final answers to $2$ decimal places.$)$

EPS before split: $

EPS after $2$:$1$ split $

EPS after $3$:$1$ split $

d$.$ What would the price per share be before and after the two$-$for$-$one and the three$-$for$-$one stock splits? $($Assume the P$/$E ratio of $20\mathrm{.}79$ stays the same.$)($Do not round intermediate calculations. Round the final answers to $2$ decimal places.$)$

Price after $2-1$ split $

Price after $3-1$ split $

e$.$ Should a stock split change the P$/$E ratio for Wilson?

multiple choice

Yes

No