Finance Worst Buy Company has had a lot of complaints from customers of late, and its stock price is now only $4 per share. It is going toemploy a one-for-six reverse stock split to increase the stock value. Assume Dean Smith owns 144 shares.a. How many shares will he own after the reverse stock split? (Do not round intermediate calculations and round your answer to thenearest whole number.)Number of sharesb. What is the anticipated price of the stock after the reverse stock split? (Do not round intermediate calculations and round youranswer to 2 decimal places.)Anticipated stock pricec. Because investors often have a negative reaction to a reverse stock split, assume the stock only goes up to 80 percent of the valuecomputed in part b. What will the stock's price be? (Do not round intermediate calculations and round your answer to 2 decimalplaces.)Stock priced. How has the total value of Dean Smith's holdings changed from before the reverse stock split to after the reverse stock split (basedon the stock value computed in part c)? To get the total value before and after the split, multiply the shares held times the stock price.(Input the amount as a positive value. Do not round intermediate calculations and round your answer to 2 decimal places.)Dean Smith's holdings

Reverse stock splits the shares of the company are merged together to form large shares and hence…

Vorst Buy Company has had a lot of complaints from customers of late, and its stock price is now only $4 per share. It is going to mploy a one-for-six reverse stock split to increase the stock value. Assume Dean Smith owns 144 shares. . How many shares will he own after the reverse stock split? (Do not round intermediate calculations and round your answer to the earest whole number.) Number of shares . What is the anticipated price of the stock after the reverse stock split? (Do not round intermediate calculations and round your nswer to 2 decimal places.) Anticipated stock price

Vorst Buy Company has had a lot of complaints from customers of late, and its stock price is now only $4 per share. It is going to mploy a one-for-six reverse stock split to increase the stock value. Assume Dean Smith owns 144 shares. . How many shares will he own after the reverse stock split? (Do not round intermediate calculations and round your answer to the earest whole number.) Number of shares . What is the anticipated price of the stock after the reverse stock split? (Do not round intermediate calculations and round your nswer to 2 decimal places.) Anticipated stock price

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Emergency Medical's stock trades at $100 a share. The company is contemplating a 3-for-2 stock split. Assuming that the stock split will have no effect on the market value of its equity, what will be the company's stock price following the stock split? Round your answer to the nearest cent. $
Worst Buy Company has had a lot of complaints from customers of late, and its stock price is now only $4 per share. It is going to employ a one-for-six reverse stock split to increase the stock value. Assume Dean Smith owns 180 shares. a. How many shares will he own after the reverse stock split? (Do not round intermediate calculations and round your answer to the nearest whole number.) Number of shares
Presently, your company’s Face Value of Equity Share RO 10 and Market Value of your Share in MSM is RO 25 per share. In order to increase the trading volume and market liquidity of your company stock, will you suggest the management to go for stock split? Explain your management about concept of stock slip with the advantage of splitting the stock of your company with the current scenario.
Suppose you have 100 common shares of Tillman Industries. The EPS is $4.00, theDPS is $2.00, and the stock sells for $60 per share. Now Tillman announces a twofor-one split. Immediately after the split, how many shares will you have, what willbe the adjusted EPS and DPS, and what would you expect the stock price to be?
Automotive Supplies Inc’s Stock trades at $50 a share. The company is contemplating a 4-for-3 stock split. Assuming that the stock split will have no effect on the market value of its equity, what will be the company’s stock price following the stock split? Select one: a. $50.00 b. $80.00 c. $75.00 d. $37.50
You believe the price of Freeze Frame Co. stock is going to fall, so you short 1,000 shares at a price of $57. The initial margin is 55 percent. Ignore dividends c-1. Construct equity balance sheets for a stock price of $62 per share. (Input all amounts as positive values.) c-2. What is your margin? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) c-3. What is your effective annual return if you cover your short position at this price in five months? (A negative value should be indicated by a minus sign.
Suppose you have 1,000 common shares of Burnside Bakeries. The EPSis $6.00, the DPS is $3.00, and the stock sells for $90 per share. Burnsideannounces a 3-for-1 split. Immediately after the split, how manyshares will you have? (3,000) What will the adjusted EPS and DPS be?($2 and $1) What would you expect the stock price to be? ($30)
You believe that Rose, Inc., stock is going to fall and you have decided to sell 800 shares short. If the current share price is $47. The initial margin is 60%. A] Construct an equity balance sheet for the company. B] Repeat question a if stock price is $40 and the stock pricde is $55. C] What is your margin at each of this stock price?
Jersey Medical earns $12.50 a share, sells for $100, and pays a $6 per share dividend. The stock is split two for one and a $3 per share cash dividend is declared. a. What will be the new price of the stock? Round your answer to the nearest dollar. $ b. If the firm's total earnings do not change, what is the payout ratio before and after the stock split? Round your answers to one decimal place. Payout ratio before the split: Payout ratio after the split: % %
Use the given partial stock table. Round dollar amounts to the nearest cent when necessary. Suppose that you owned 2000 shares of stock in Procter & Gamble (PG). You purchased the shares at a price of $48.94 per share and sold them at the closing price of the stock given in the table. (a) Ignoring dividends, what was your profit or loss on the sale of the stock? $ This is a--Select- v (b) If your broker charges 1.8% of the total sale price, what was the broker's commission?
A stock is currently selling for $30.00 a share. What is the gain or loss on the following transactions? Use a minus sign to enter the amount as a negative value. Round your answers to the nearest cent. You take a long position and the stock’s price declines to $16.85. $ You sell the stock short and the price declines to $16.85. $ You take a long position and the price rises to $43.65. $ You sell the stock short and the price rises to $43.65.
-Suppose you own 1,000 common shares of Laurence Incorporated. The EPS is $10.00, the DPS is $3.00, and the stock sells for $75 per share. Laurence announces a 2-for-1 split. Immediately after the split, how many shares will you have? - What will the adjusted EPS and DPS be? Round your answers to the nearest cent. -What would you expect the stock price to be? Round your answer to the nearest cent.

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