Southwest Tires declares a stock split. The current price is $82.00 per share, and you own 300

Question:

Southwest Tires declares a stock split. The current price is $82.00 per share, and you own 300 shares. The split is a 4-for-1 split. What is the expected after-share price, and what is your wealth before and after the split?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Management Core Concepts

ISBN: 978-0132671033

2nd edition

Authors: Raymond M Brooks

See More Books

Question Posted: May 08, 2014 08:11 AM

See More Questions

What happens in a market if the current price is above the equilibrium price? What happens if the current price is below the equilibrium price?
You own 1,000 shares of Jennings Corp. stock which is currently selling for $88. Calculate the number of shares you would own and the stocks market price after each of the following stock splits. a....
You own 5,000 shares of $4 par value common stock of Cohen & Cohen Hardware Corp. The company has 50,000 shares of common stock outstanding. Cohen & Cohen does not have any other classes of stock...
Problem 4.2 Ask the user to enter his/her age, with the prompt: "How old are you? Please enter your age as a number between 0 and 120. -> ". Check that what was entered is a number between 0 and 120....
Reliable Insurance Company offers a term life insurance policy with a renewable annual premium. The first year premium is $795. Premiums increase by 4.1% each year. What will premiums be in the nth...
An engineer is assigned to design an electrochemical cell that will deliver a potential of exactly 1.52 V. Design and sketch a cell to provide this voltage, detailing the solutions, their...
As sales manager for a nationwide electrical products distributor, you are about to roll out a new line of electrical products. What method would you use to train the 500 salespeople in your national...
A company preparing for a Chapter 7 liquidation has the following liabilities: Note payable A of $90,000 secured by land having a book value of $50,000 and a fair value of $70,000. Note payable B...
On December 31, Rodriguez Company has the following list of account balances. Accounts Payable $ 28,900 Equipment $ 31,100 Accounts Receivable 57,700 Service Revenue 61,800 Accumulated Depreciation,...
1. How did Hennessys background prepare him for starting a business? What entrepreneurial qualities does he embody? 2. What were Hennessys entrepreneurial motivations for founding Dash-Locker? 3....
Refer to Problem 10. Now assume that Kevin bought the stock at $17.00 per share and his tax rates are 30% on dividends and 15% on capital gains. If Kevin changes the dividend policy from a...
Northeast Tires announces a reverse split. The company will consolidate outstanding shares through a 1- 5 split. That is, every 5 shares you currently own will be consolidated into 1 share. The...
What are the factors, in addition to supply and demand relationships, that determines market interest rates?
Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): Revenues Expenses 2024 $ 888 760 Pretax accounting income (income statement) Taxable income (tax return) $ 128 $ 116 2025...
How would background and significance apply to a study in understanding consumer electric vehicle feature preferences in a marketing research plan?
Why is Bill of Material accuracy important in the effective use of MRP?
a) The following information is available for Cullumber Company. (Assume all raw materials used were direct materials.) January 1, 2022 2022 December 31, 2022 Raw materials inventory $27,560 $31,800...
What is competing on analytics? Why is competing on analytics important? Are business decisions solely based upon data? What other inputs go into managerial decision making? Provide examples
Discuss several measures of active management.
The population of Detroit, Michigan, decreased from 1,027,974 in 1990 to 688,701 in 2013 (Source: U.S. Census Bureau). Find the average rate of change in the population of Detroit, Michigan, over the...
Carl Wilfred wishes to have $400,000 in a retirement fund 20 years from now. He can create the retirement fund by making a single lump-sum deposit today. a. If he can earn 6% on his investments, how...
What are some of the disadvantages of relying too heavily on commercial paper as a source of short-term credit?
Explain the differences between pledging and factoring receivables.
Explain the difference between a floating lien and a trust receipts arrangement.
Of what use are government and business budgets to reporters and where would an agency or business hide spending that it wasn't especially interested in sharing with the public? (Please keep in mind...
Mom and Dad owned a house as tenants by the entirety until Dads death last year. Mom then transferred the house to herself as life tenant, with the remainder to her son Sonny as remainderman. Just...
Write a brief story of your life and career to date. Why and how have you become who you are today? What are your strengths and weaknesses? Now write your story again through the eyes of people who...

Southwest Tires declares a stock split. The current price is $82.00 per share, and you own 300

Question:

Step by Step Answer:

Expected share price 82004 ...View the full answer

Financial Management Core Concepts

Students also viewed these Finance questions