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?
Market price per share = $63 × 4/5 = $50.40
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81.
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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?
Par value per share = ($40,000/20,000 shares) × 5/2 = $5.00
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82.
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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?
Market price per share = ($18.92m/220,000 shares) × 2/3 = $57.33
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