Wilson Pharmaceuticals stock has done very well in the market during the last three years. It has risen from $45 to $70 per share. The firms current statement of stockholders equity is as follows:

Common stock (4 million shares issued at par value of $10 per share) $ 40,000,000

Paid-in capital in excess of par 16,000,000

Retained earnings 44,000,000

Net worth 100,000,000

A-1. How many shares would be outstanding after a two-for-one stock split?

A-2. What would be its par value?

B-1. How many shares would be outstanding after a three-for-one stock split?

B-2. What would be its par value

C. Assume that Wilson earned $13 million. What would its earnings per share be before and after the two-for-one stock split? After the three-for-one stock split?

D. What would be the price per share after the two-for-one stock split? After the three-for-one stock split? (Assume that the price-earnings ratio of 21.54 stays the same.)