Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Wilson Pharmaceuticals has done very well in the stock market during the last three years. Its stock has risen from $ 5 5 per share

Wilson Pharmaceuticals has done very well in the stock market during the last three years. Its stock has risen from $55 per share to $80 per share. Its P/E ratio is 36.36. Its current statement of net worth is:63,000,00057,000,000
Net worth
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 $11 million. What would its EPS be before and after the two-for-one stock split? (Round the final answers to 2 decimal places.
D. What would the price per share be before and after the two for one and the three for one stock splits? (In $)
E. Should a stock split change the P/
E ratio for wilson ? Yes or No
Please make sure to answer d and e parts as they are not mentioned in the picture.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Finance Essentials

Authors: Charles O. Kroncke, Alan E. Grunewald, Erwin Esser Nemmers

2nd Edition

0829901590, 978-0829901597

More Books

Students also viewed these Finance questions

Question

Identify the major phases of the training and HRD process

Answered: 1 week ago