Question: Marston Mfg recently declared a 4 for 1 split for its common shares. Before the split the firm's share price had risen to $600 per

Marston Mfg recently declared a 4 for 1 split for its common shares. Before the split the firm's share price had risen to $600 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 8 million shares of stockoutstanding and had net income of $36million.

A. Before the stock split what was is Marston's earnings per share? Round 4 decimal places.

B) Following the stock split, how many shares of common stock will Marston have outstanding? _______million shares, round to the nearest whole number.

C) What are the firms earnings per share after the stock split? Round to 4 decimal places.
D) If you owned 100 shares of stock before the split, how much are the total earnings for your shares? Round to the nearest dollar.

E) How much are the total earnings on your post split shares?

F) Were you better off financially as the holder of 100 shares of pre split stock after the 4 for 1 split? a. Before the stock split what is Marston's earnings per share? $(Round

a. Before the stock split what is Marston's earnings per share? $(Round to four decimal places.) b. Following the stock split, how many shares of common stock will Marston have outstanding? million shares (Round to the nearest whole number.) c. What are the firm's earnings per share after the stock split? (Round to four decimal places.) d. If you owned 100 shares of stock before the split, how much are the total earnings for your shares? (Round to the nearest dollar.) How much are the total earnings on your post-split shares? (Round to the nearest dollar.) e. Were you better off financially as the holder of 100 shares of pre-split stock after the 4-for-1 split? (Select from the drop-down menu.)

Step by Step Solution

★★★★★

3.29 Rating (152 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Before the stock split Marstons Earnings per share Net income Number of shares 40m10m 4 ... View full answer

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!

Marston Mfg. recently declared a 4- for- 1 stock split for its common shares. Before the split the firms share price had risen to $ 600 per share and the firms CFO felt that this high stock price...

WW International (WWI) recently declared a 3-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...

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

The company had 200,000 shares of common stock outstanding throughout the year. In addition, as of January 1, the company had issued stock options that allowed employees to purchase 50,000 shares of...

The financial statements at the end of Alpine Realty?s first month of operations are as follows: Instructions By analyzing the interrelationships among the four financial statements, determine the...

The balance in retained earnings on January 1, 2010, for Persinger Inc, was $800,000. During the year, the corporation paid cash dividends of $90,000 and distributed a stock dividend of $8,000. In...

On January 1, the company had 100,000 common shares outstanding. On April 1, the company issued 30,000 additional shares. On August 1, the company performed a 2-for-1 stock split. The company also...

Gary's Parts Shop recorded the following purchases and sales during the past year: Assume that Gary's Parts Shop sold all of the June 15 purchase and 100 cases each from the January 1 beginning...

Bob Cleary, the controller of Mountain-Pacific Railroad, has prepared the financial statements for 2011 and 2012, shown below and on the next page. The market prices of the company's stock as of...

Franklin Sports Authority purchased inventory costing $5,000 by signing an 8% short-term note payable. The purchase occurred on September 30, 2010. Franklin pays annual interest each year on...

1. For an individual with Type O blood, choose all possible blood types of their children. Type Type A Type B Type AB 2. Match the statement/condition on the left with the type of dominance...

Horace entered into the Achimota Mall branch of Shoprite with the intention of purchasing his favourite Royal energy drink. While in the shop, he spotted a bottle of the drink being displayed on one...

Determine the Appropriate Function and Write a QUERY: Choose a table, choose a column in the table that allows and has null values and replace (in your query) the null values with any value you...

Plot the six risks on a probability/impact matrix using the probability / impact matrix template. Also assign a numeric value for the probability and impact of each risk on meeting the main project...

3. (1 point) Given the free-body diagram shown below, what is the value of M at x=2 m? 10 kN 10 kN A. -20 kN-m B. -10 kNm I: C. 0 kNm 10 kN-m D. 10 kNm 5 kN 15 kN 3 m 5 m 1 m 1 m E. 20 kNm O A. A O...

is financing obtained from investment firms that specialize in financing small, high - growth companies includes all the money the owner of the business invests in his or her new enterprise is...

/* Practice using layouts Anderson, Franceschi */ import javax.swing.*; import java.awt.*; import java.awt.event.*; public class NestedLayoutPractice extends JFrame { private Container contents;...

Let X be a random variable taking on values a1, a2, . . . , pr with probabilities p1, p2, . . . , pr and with E(X) = μ. Define the spread of X as follows: This, like the standard deviation, is a...

In the preceding chapter we examined the payback period capital- budgeting criterion. Often this capital- budgeting criterion is used as a risk- screening device. Explain the rationale behind its use.

The Kumar Corporation is planning on issuing bonds that pay no interest but can be converted into $ 1,000 at maturity, 7 years from their purchase. To price these bonds competitively with other bonds...

How can the formula interest = principle * rate * time be used to estimate the cost of short- term credit?

Design specification for the concrete slabs in Problem 4 is between 78 and 81 kg. a. Based on the data given in Problem 4, is the specification being met? b. Estimate the process standard deviation...

After a number of complaints about its directory assistance, a telephone company examined samples of calls to determine the frequency' of wrong numbers given to callers. Each sample consisted of 100...

Analysis of the output of a process has suggested that the variability was non-random on several occasions recently. However, each time the investigation has not revealed any assignable causes. What...