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Wilson Pharmaceuticals' stock has done very well in the market during the last three years. It has risen from $85 to $110 per share. The
Wilson Pharmaceuticals' stock has done very well in the market during the last three years. It has risen from $85 to $110 per share. The firm's current statement of stockholders' equity is as follows: Common stock (2 million shares issued at par value of $10 per share) Paid-in capital in excess of par Retained earnings Net worth $20,000,000 17,800,000 43,800,000 $80,000,000 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").) Number of shares million a-2. What would be its par value? (Do not round Intermediate calculations and round your answer to 2 decimal places.) Par value 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").) Number of shares 2 million| b-2 What would be its par value? (Do not round Intermediate calculations and round your answer to 2 decimal places.) Par value 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 after 2-for-1 split EPS after 3-for-1 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 15.71 stays the same.) (Do not round Intermediate calculations and round your answers to 2 decimal places.) Price after 2-for-1 split Price after 3-for-1 split
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