Question: Check my work 5 Problem 18-27 (modified) Wilson Pharmaceuticals has done very well in the stock market during the last three years. Its stock has

Check my work 5 Problem 18-27 (modified) Wilson Pharmaceuticals has done very well in the stock market during the last three years. Its stock has risen from $65 per share to $90 per share. Its P/E ratio is 7.50. Its current statement of net worth is 10 points Common stock (1 million shares issued; 10 million shares authorized) Retained earnings Print $ 21,080, cee 44,000,000 References Net worth $65, eee.ee a. How many shares would be outstanding after a two-for-one stock split? (Enter the answer in millions.) Number of shares million b. How many shares would be outstanding after a three-for-one stock split? (Enter the answer in millions.) Number of shares million *** Check my work 5 b. How many shares would be outstanding after a three-for-one stock split? (Enter the answer in millions.) Number of shares million c. Assume Wilson earned $12 million. What would its EPS be before any stock split, after the two-for-one stock split and after the three-for-one stock splits? (Round the final answers to 2 decimal places.) sirits Print $ EPS before split: EPS after 2:1 split EPS after 3:1 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 7,50 stays the same.) (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Price after 2-1 split Price after 3-1 split $
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
