Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Wilson Pharmaceuticals' stock has done very well in the market during the last three years. It has risen from $ 5 5 to $ 8
Wilson Pharmaceuticals' stock has done very well in the market during the last three years. It has risen from $ to $ per share. The firm's current statement of stockholders' equity is as follows:
a How many shares would be outstanding after a twoforone stock split?
Note: Do not round intermediate calculations. Input your answer in millions eg $ million should be entered as
Number of shares
million
a What would be its par value?
Note: Do not round intermediate calculations and round your answer to decimal places.
Par value
b How many shares would be outstanding after a threeforone stock split?
Note: Do not round intermediate calculations. Input your answer in millions eg $ million should be entered as
Number of shares
million
b What would be its par value?
Note: Do not round intermediate calculations and round your answer to decimal places.
Parvalue
c Assume that Wilson earned $ million. What would its earnings per share be before and after the twoforone stock split? After the threeforone stock split?
Note: Do not round intermediate calculations and round your answers to decimal places.
tableEPS before,EPS after for split,EPS after for split,
d What would be the price per share after the twoforone stock split? After the threeforone stock split? Assume that the priceearnings ratio of stays the same.
Note: Do not round intermediate calculations and round your answers to decimal places.
tablePrice after for split,Price after for split,
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started