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Posted by: Homeworkhelp
Price Quoted by Student: $4
Posted On: 2018-02-01 04:04:36
 
Question

Jersey Mining earns $9.50 a share, sells for $90, and pays a $6 per share dividend. The stock is split two for one and a $3 per share cash dividend is declared.

a. What will be the new price of the stock?
b. If the firm's total earnings do not change, what is the payout ratio before and after the stock split?

 

 

TUTORIAL PREVIEW

New Price = Old price x Reciprocal Ratio of Stock Split

 


Solutions
Jersey Mining earns $9.50 a share, sells for $90,
Price $4
Attachment 1: Jersey Mining earns.docx
Solution Posted By: Homeworkhelp    Posted on: 01-02-2018