1. between time 0 and time 1 a publicly traded company did ‘x’ for ‘y’ stock split.

suppose the rate of return on this company’s stock from time 0 to time 1 was 0.23 (in decimals) [assume the company did not issue dividends]

what was the “x” for “y” stock split ratio? ANSWER TO 4 DECIMAL PLACES

2) Suppose an investor purchases a stock at time 0 for $100:

Now suppose that

- at time 1: the stock price is $198 and dividend issues is $0.68

- at time 2: the stock price is $213 and dividend issues is $0.44

- at time 3: the stock price is $247 and dividend issued is $0.06

what is the total sum of the FV of dividends (where the “future” period is 3rd period?) ANSWER TO 2 DECIMAL PLACES

Answer rating: 100% (QA)

1 ANSWER The x for y stock split ratio was 2 for 1 WORKING 023 P1 P0P0 ... View the full answer