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Wilson Pharmaceuticals has done very well in the stock market during the last three years. Its stock has risen from $35 per share to $60

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Wilson Pharmaceuticals has done very well in the stock market during the last three years. Its stock has risen from $35 per share to $60 per share. Its P/E ratio is 15.00. Its current statement of net worth is: a. How many shares would be outstanding after a two-for-one stock split? (Enter the answer in millions.) 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 $12 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? (Assume the P/E ratio of 15.00 stays the same.) (Do not round intermediate calculations. Round the final answers to 2 decimal places.) e. Should a stock split change the P/E ratio for Wilson? Yes No

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