What is a Stock Split? a) Explain what can a firm gain from such split? b) XYZ is effecting a 2 for 1 split. Please show the number of outstanding shares and the price per share after the split. Before the split: 20 shares @ $200 per share with a total market capitalization of $4000.

Mia is an 85 year old widow and retiree from a large corporation. Her former employer recently changed the health care coverage for retirees to an HMO. Vera is having difficulty with her knees and has requested a referral to an orthopedist. After ordering X-rays, her primary physician informs her that her knees are not serious enough to warrant knee replacement, and he gives her a prescription to alleviate the pain. Several weeks later vera reads an article that doctors in the HMO are rewarded for keeping utilization costs down. a) Discuss the ethics of HMOs rewarding physicians for keeping utilization costs down. b) Does Nila have any options?