Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 firm's current statement of stockholders' equity is as follows:

Common stock (4 million shares issued at par value of $10 per share)$40,000,000Paid-in capital in excess of par15,000,000Retained earnings45,000,000Net worth$100,000,000

a-1.How many shares would be outstanding after a two-for-one stock split?(Do not round intermediate calculations. Input your answer in millions (e.g., $1.23 million should be entered as "1.23").)

a-2.What would be its par value?(Do not round intermediate calculations and round your answer to 2 decimal places.)

b-1.How many shares would be outstanding after a three-for-one stock split?(Do not round intermediate calculations. Input your answer in millions (e.g., $1.23 million should be entered as "1.23").)

b-2What would be its par value?(Do not round intermediate calculations and round your answer to 2 decimal places.)

c.Assume that Wilson earned $14 million. What would its earnings per share be before and after the two-for-one stock split? After the three-for-one stock split?(Do not round intermediate calculations and round your answers to 2 decimal places.)

EPS before

EPS afer 2-for-1 split

EPS after 3-for-1 split

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

Using Microsoft Excel And Access 2013 For Accounting

Authors: Glenn Owen

4th Edition

1305161858, 9781305161856

More Books

Students also viewed these Accounting questions

Question

6. How can a message directly influence the interpreter?

Answered: 1 week ago