Wilson Pharmaceuticals has done very well in the stock market during the last three years. Its stock has risen from $45 per share to $70 per share. Its P/E ratio is 20. Its current statement of net worth is 

Common stock (4 mi ll ion shares issued;
10 mill ion shares authorized) ............. .$ 55,000,000
Retained earnings ...................... .. . . . ....45,000,000
Net worth..............................................$1 00,000,000
a. What changes would occur in the statement of net worth after a two-for-one stock split?
b. What would the statement of net worth look like after a three-for-one stock split?
c. Assume Wilson earned $14 million. What would its EPS be before and after the two-for-one stock split?
d. What would the price per share be before and after the two-for-one and the three-for-one stock splits? (Assume the P/E ratio of 20 stays the same.)
e. Should a stock split change the P/E ratio for Wilson?