Assume that you own 200 shares of General Dynamics Corp. (GD) selling at $90 per share. In
Question:
a. How much was your investment worth prior to the split?
b. Assuming GD's management decides to split the stock three-for-one, how many shares would you own after the split?
c. What would the new price per share be immediately after the split?
d. How much would your investment be worth after the three-for-one split?
Step by Step Answer:
a Prior to the split your shares of GD were worth 180000 9000 200 ...View the full answer
Personal Finance Turning Money into Wealth
ISBN: 978-0133856439
7th edition
Authors: Arthur J. Keown
Related Video
Stocks (also known as equities) are securities that represent ownership in a company. They are issued by companies to raise capital, and when an individual buys stocks, they become a shareholder in that company. Investing in stocks can be a way for individuals to potentially earn a return on their investment through dividends and capital appreciation. However, investing in stocks also carries a level of risk, as the value of the stock can fluctuate based on various factors such as the financial performance of the company and general market conditions. For companies, issuing stocks can be a way to raise funds for growth and expansion. When a company goes public by issuing an initial public offering (IPO), it can raise significant capital by selling ownership stakes to the public. Companies can also issue additional stock offerings to raise additional capital as needed.
Students also viewed these Corporate Finance questions
-
Discuss the ethical choices in the situations below. In each instance, describe the ethical dilemma, determine the alternative courses of action, and tell what you would do. 1. You are the payroll...
-
You own 200 shares of Western Feed Mills stock valued at $36.72 per share. What is the dividend yield if your annual dividend income is $282?
-
Say you own 200 shares of Mattel and 100 shares of RadioShack. Would your portfolio return be different if you instead owned 100 shares of Mattel and 200 shares of RadioShack? Why?
-
Mario and Kaitlin are married and file a joint tax return. They have adjusted gross income of $385,000 that includes $4,700 of investment income ($3,000 short-term capital gains and $1,700 of...
-
Below are the last three years financial statements of Sentec Inc., a distributor of electrical fixtures. a. Compute Sentec Inc.s working capital requirement (WCR) and prepare its managerial balance...
-
Explain the differences among a speakers outline, note cards, and a speakers map.
-
Using the Wilson method with \(\theta=1.4\), solve Problem 11.18. Data From Problem 11.18:- Using the central difference method, find the response of the two-degree-of-freedom system shown in Fig....
-
The following are comparative data for Sunshine State Equipment, Inc., for the 3-year period 20092011. Instructions: 1. From the foregoing data, calculate financial ratios for the three years...
-
Oriole Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost a sales data. Sales mix is determined based upon total units sold....
-
R. C. Coleman distributes a variety of food products that are sold through grocery store and supermarket outlets. The company receives orders directly from the individual outlets, with a typical...
-
Two of the most commonly cited stock market indexes are the Dow and the S&P 500. Which of these two indexes better represents movements in the overall market? Why?
-
Using the calculations from Problem 9, assume that instead of investing $200 every quarter, the investor decided to make a lump-sum $800 purchase on the first day of the year. If at year-end the...
-
Holt Enterprises recently paid a dividend, D0, of $2.75. It expects to have nonconstant growth of 18% for 2 years followed by a constant rate of 6% thereafter. The firms required return is 12%. a....
-
Suppose you write a June expiration call option on Tesla with exercise price $85 and at the same time, write a June Tesla put option with exercise price $80. The premium of the call option is $0.90...
-
The following information was taken from the personal records of Justin Knight on May 31, 2021. Opening Balances Cash $3,900 Computer $2,400 House $196,500 Mortgage $103,400 Net Worth $99,400 The...
-
Suppose the Jenson's alpha of a portfolio is 2.5%, while the actual return is 12%. The risk-free rate is 2.5% and the expected return on the market is 12%. What is the Treynor Ratio of the portfolio?
-
Evaluate the thermodynamic properties and behavior of complex fluids, such as liquid crystals, surfactant solutions, and polymeric materials, in terms of phase transitions, self-assembly phenomena,...
-
Interest rate swap Triple A and Triple B have been offered the following rates per annum on a $10 million 5-year loan: Triple A Triple B S&P credit rating AAA BBB Fixed rate 10.5% 13.6% Floating...
-
In Exercises 18, add or subtract as indicated and write the result in standard form. (2+ 6i) + (4 - i)
-
During the year land was revalued and the surplus reported as Revaluation surplus; and an asset costing 80,000, written down to 38,000, was sold for 40,000. Identify the cost of any non-current...
-
CSB, Inc. has a beta of .765. If the expected market return is 10.5 percent and the risk-free rate is 3.5 percent, what is the appropriate expected rate of return of CSB (using the CAPM)?
-
The expected return for the general market is 10.3 percent, and the risk premium in the market is 5.3 percent. Tasaco, LBM, and Exxos have betas of .864, .693, and .575, respectively. What are the...
-
You own a portfolio consisting of the following stocks: The risk-free rate is 3 percent. Also, the expected return on the market portfolio is 10.5 percent. a. Calculate the expected return of your...
-
J is going to receive a 30-year annuity of 8,500 and L is going to receive perpetuity of 8,500. If the appropriate interest rate is 6%, how much more is L's cash flow worth?
-
. Assume that over the past 88 years, U.S. Treasury bills had an average return of 3.5% as compared to 6.1% on long-term government bonds. What was the average risk premium on the long-term...
-
The following data were gathered to use in reconciling the bank account of Bradford Company: Balance per bank $ 18,050 Balance per company records 10,040 Bank service charges 50 Deposit in transit...
Study smarter with the SolutionInn App