Question: 2 and 3 2 pc QUESTION 2 Grillon Co. is considering a 9-for-5 stock split. The current stock price is $87.50 per share, and the

2 and 3

2 pc QUESTION 2 Grillon Co. is considering a 9-for-5 stock split. The current stock price is $87.50 per share, and the firm believes that its total market value would increase by 3% as a result of the improved liquidity that should follow the split. What is the stock's expected price following the split? 0.550.07 O 6.551.07 OC. $41.06 Od 537.55 O.555.58 w 2 point QUESTION 3 Pavlin Corp's projected capital budget is $2,000,000, its target capital structure is 40% debt and 60% equity, and its forecasted net income is 51.075,000. If the company follows the residual dividend model, how much dividends will it pay or alternatively, how much new stock must it issue? O . S151.250: 5126,250 Ob.5131,250; S100,000 0.5142,500, 5122.500 d.S108,750:5101.250 OSO, S125.000

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