Question: Problem 13-13 (similar to) E Question Help (Stock splits and large stock dividends) WW International (WWI) recently declared a 4.for 1 stock split for its

 Problem 13-13 (similar to) E Question Help (Stock splits and large

Problem 13-13 (similar to) E Question Help (Stock splits and large stock dividends) WW International (WWI) recently declared a 4.for 1 stock split for its common shares. Before the split the firm's share price had risen to $450 per share and the firm's CFO felt that this high stock price inhibited trading in the firm's shares. Prior to the split the firm had 9 milion shares of stock outstanding and had net income of $36million a. Before the stock split what was wwi's earnings per share? b. Following the stock split, how many shares of common stock did WWI have outstanding? c. What was the firm's earnings per share after the stock split? d. If you owned 100 shares of stock before the split, how much were the total earnings for your shares? How much were the total comings on your postsplit shares e. Were you better off financially as the holder of 100 shares of pre-split stock after the 4 for split? a. Before the stock split what was wwr's earnings per share? $ (Round to four decimal places.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!