Question: Smith J Truck, Inc recently completed a 2-for-1 stock split. Prior to the split, the company had 20 million shares outstanding and its stock price

Smith J Truck, Inc recently completed a 2-for-1 stock split. Prior to the split, the company had 20 million shares outstanding and its stock price was $45 per share. After the split, the total market value of the company's stock equaled $900 million. What was the price per share of the company's stock following the stock split?

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!

A single-phase, 5-MVA, 20/8.66-kV transformer is protected by a differential relay with taps. Available relay tap settings are 5:5, 5:5.5, 5:6.6, 5:7.3, 5:8, 5:9, and 5:10, giving tap ratios of 1.00,...

Martin Motors recently completed a 2-for-1 stock split. Prior to the split, the company had 10 million shares outstanding and its stock price was $150 per share. After the split, the total market...

QUESTION 20 An option is a contract which gives its holder the right to buy or sell an asset at a predetermined price within a specified period of time. True False QUESTION 21 The exercise price is...

Albany Motors recently completed a 3-for-1 stock split. Prior to the split the company had 10 million shares outstanding and its stock price was $120 per share. After the split, the total market...

6. One implication of the bird-in-the-hand theory of dividends is that a reduction in dividend yield must be offset by a more than in order to keep stockholder's return constant, other held constant...

24. Nordic Networks recently completed a 2-for-1 stock split. Prior to the stock split, the stock price was $90 per share and the company had 1,400,000 shares outstanding. What is the price of a...

Question 17 4 pts David Motors recently completed a 3-for-2 stock split. Prior to the split, the company had 10 million shares outstanding and its stock price was $150 per share. After the split, the...

David Motors recently completed a 3-for-2 stock split. Prior to the split, the company had 10 million shares outstanding and its stock price was $150 per share. After the split, the total market...

Albany Motors recently completed a 3-for-1 stock split. Prior to the split, the company had 10 million shares outstanding and its stock price was $150 per share. After the split, the total market...

a.) Your firm is selling a 3-year old machine that has a 5-year class life. The machine originally cost $580,000 and required an investment in net working capital of $10,000 at the time of...

Albany Motors recently completed a 3-for-1 stock split. Prior to the split, the company had 10 million shares outstanding and its stock price was $150 per share. After the split, the total market...

1.Check the order of identification by applying Order condition and Rank condition on second Example of Chapter 11. 2.Re-estimate the IS-LM model by using TSLS method with the given data and...

How do governmental funds report capital outlay in fund financial statements? How do government-wide financial statements report capital expenditures?

Red Cave Entertainment is evaluating Project x , whice would require the purchase of a piece of equipment for $ 7 4 5 . 0 0 0 today. in year 3 . Project x is expected to have relevant revenue of $ 6...

9. (15 points) A company is considering a new project that requires an investment of \$5 million. The project is expected to generate cash flows of $2 million in year 1,$3 million in year 2, and $4...

(Appendices) INTERNAL CONTROL FOR SALES. Gateway 2000 is a large mail-order computer and software business located in South Dakota. Most of Gateways customers call on its toll-free phone line and...

(Appendices) Why is the allowance procedure preferred over the direct write-off procedure for uncollectible accounts? LO77

(Appendices) SALES DISCOUNT POLICIES. Consider three businesses, all of which offer price reductions to their customers. The first is an independently owned Shell service station located at a busy...