Question: When Tandy (RadioShack) Corporation announced a 2:1 stock split, the company had 97 million shares outstanding, trading at $100 per share. (a) Estimates the number

When Tandy (RadioShack) announced a 2:1 stock split, the company had 97 million shares outstanding, trading at $100 per share.
(a) Estimates the number of share outstanding and market price per share immediately after the split.
(b) Estimate the company’s overall market value, and explain whether you expect the company’s overall market value to change due to the split.

Step by Step Solution

★★★★★

3.40 Rating (156 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a The number of shares outstanding after the split would be 194 ... 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

Document Format (1 attachment)

61-B-A-L (744).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

A company has 1,000,000 shares outstanding trading at $15 apiece. Managers believe that the discount rate appropriate for the risk borne is 15% and total cash flows, expected to be $1 million next...

A company has 10 million shares outstanding trading for $7 per share. It also has $300 million in outstanding debt. If its equity cost of capital is 15%, and its debt cost of capital is 9%, and its...

Kahuku Corporation has 100 million shares outstanding trading at $20 per share. The company announces its intention to raise $150 million by selling new shares. a). What do market signaling studies...

When Tandy (RadioShack) Corporation announced a 2:1 stock split, the company had 97 million shares outstanding, trading at $100 per share. a. Estimate the number of shares outstanding and market...

When Tandy (RadioShack) Corporation announced a 2:1 stock split, the company had 97 million shares outstanding, trading at $100 per share.a. Estimate the number of shares outstanding and market price...

BE 1 2 . 2 ( LO 6 ) When Radio Shack announced a 2 : 1 stock split, the company had 9 7 million shares outstanding, trading at $ 1 0 0 per share. Estimate the number of shares outstanding and market...

Please help with the following; 1. If a stock is trading at $50 and has a quarterly dividend of $0.55, the dividend yield on the stock is A. 1.1%. B. 5.0%. C. 5.5%. D. 4.4%. 2. If a company has 3.5...

Which is not an item that should be included in the computation of other comprehensive income'? Select one: A. Unrealized gains (losses) B. Interest expense C. Adjustments to pension plans D. Foreign...

Hi, Could you please help with the following M&A/finance questions? Thank you! QUESTION 1 Which of the following statement about value of control is true? A. The value of control is greater for a...

Write pseudocode to decode a message that has been encoded using the following algorithm. Step 1: Take three consecutive letters. Step 2: Reverse their order. Step 3: Interpret each as a base 26...

To prepare solutions to the following requirements, use the data provided in P7, but assume that the company uses the perpetual inventory system. In P7, The inventory of Product A and data on...

True or False: Visualization in engineering graphics refers to the ability to interpret and understand 2 D and 3 D representations of objects. True False

Fraud investigators found that 70 percent of the nearly $160 million in sales booked by an Asian subsidiary of a European company between September 2006 and June 2007 were fictitious. In an effort to...

Journalize the adjusting entry needed on December 31, the end of the current accounting period, for each of the following indepen¬dent cases affecting Woolton Corporation. Include an explanation...

Finnish Imports is an importer of silver, brass, and furniture items from Finland. Lois Ferguson is the general manager of Finnish Imports. Ferguson employs two other people in the business. Mandy...

Swedish Imports is an importer of silver, brass, and furniture items from Sweden. Sandra Gustafson is the general manager of Swedish Imports. Gustafson employs two other people in the business. Mandy...

Springfield Bank is evaluating Creek Enterprises, which has requested a $4,000,000 loan, to assess the firm's financial leverage and financial risk. On the basis of the debt ratios for Creek, along...

In the chapter, we saw the combustion reaction for methane. This was actually a complete combustion reaction because carbon ended up as carbon dioxide. If the same reaction is carried out where the...

The following table was taken from the 2019 annual report of Merck & Company, a major U.S. pharmaceutical company (dollars in millions). INSTRUCTIONS: a. How much did market value accounting impact...

In its 2019 annual report, the Unilever Group, which published IFRS-based financial statements, reported the following in the inventory footnote (in million euros). "During 2019, a total expense of...

Due to slackening global demand for crude oil, as well production disputes between two large oil-producing countries (Saudi Arabia and Russia), crude oil prices plummeted in world markets in 2020. A...

Global Corp expects sales to grow by 9% next year. Assume that Global pays out 50% of its net income. Using the percent of sales method and the data provided forecast the stockholders equity. Income...

Help me with Part 3 and Part 4 The Data Collection: On May 18'\Part 2. (5 points) Model Evaluation. a. The model that uses all of the explanatory variables to predict monthly rents is the \"full...

Universal Travel, Inc. tom prestados $494,000 el 1 de noviembre de 2021 y firm un pagar a doce meses con un inters del 6%. El capital y los intereses son pagaderos en su totalidad al vencimiento el...