ABC has net income of $4 million in 2022 and 1 million shares outstanding on stock market. It’s ordinary shares is currently traded at $42.51. ABC has recently declared an 8% share dividend this year

A) what is ABC P/E ratio in 2022?

B) show the impact of this share dividend in ABC’s number of outstanding shares and current market share price

C) if instead of share dividend, ABC announced a 7 to 4 share split. Demonstrate the impact of share split on ABC’s number of outstanding shares and current market shares price

D) from shareholders perspective, will the prefer the share dividend or the share split? Explain the answer

Answer rating: 100% (QA)

The detailed answer for the above question is provided below A PE Ratio The PE ratio for ABC in 2022 ... View the full answer