Sunday, November 10, 2019

Cooper Brands, Inc., has 68,000 shares of stock outstanding at a market price of $63 a share

Cooper Brands, Inc., has 68,000 shares of stock outstanding at a market price of $63 a share. The par value is $1 per share. The company has just announced a 5-for-4 stock split. What will the market price per share be after the split? 
 
A. 
$50.40

B. 
$58.20

C. 
$62.50

D. 
$78.75

E. 
$82.50
Market price per share = $63 × 4/5 = $50.40


81.
The Mining Co. has 20,000 shares of stock outstanding. The current market value of the firm is $328,000. The company has retained earnings of $27,000, capital in excess of par value of $160,000, and a common stock account value of $40,000. The company is planning a 2-for-5 reverse stock split. What will the par value per share be after the split? 
 
A. 
$0.15

B. 
$0.20

C. 
$1.00

D. 
$2.50

E. 
$5.00
Par value per share = ($40,000/20,000 shares) × 5/2 = $5.00


82.
East Coast Marina has 220,000 shares of stock outstanding. The current market value of the firm is $18.92 million. The company has retained earnings of $3.8 million, paid in surplus of $6.7 million, and a common stock account value of $220,000. The company is planning a 3-for-2 stock split. What will the market price per share be after the split? 
 
A. 
$28.67

B. 
$57.33

C. 
$66.67

D. 
$108.00

E. 
$129.00
Market price per share = ($18.92m/220,000 shares) × 2/3 = $57.33

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