1- You own 600 shares of stock at a price of $3.61 per share. The company...

1- You own 600 shares of stock at a price of $3.61 per share. The company has a 1 for 3 reverse split.

How many shares are now owned?
What is the new price/share?
What is the value of your investment before the split?
After the split?

2- You own 5000 shares of stock at a price of $.45 per share. The company has a 1 for 10 reverse split.
- How many shares are now owned?
- What is the new price/share?
What is the value of your investment before the split?
After the split?

3- You own 200 shares of stock at a price of $196.24 per share. The company has a 2 for 1 split.

How many shares are now owned?
What is the new price/share?
What is the value of your investment before the split?
After the split?

Solutions

Expert Solution

for formulas and calculations, refer to the image below -

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

1. You own 500 shares of Stock A at a price of $65 per share, 597...

1. You own 500 shares of Stock A at a price of $65 per share, 597 shares of Stock B at $71 per share, and 550 shares of Stock C at $34 per sharer. The betas for the stocks are 1.7, 1.2, and 0.6, respectively. What is the beta of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 2. A stock has an expected return of 13.7 percent, a beta of 1.9, and the...

You own 395 shares of Stock X at a price of $36 per share, 265 shares...

You own 395 shares of Stock X at a price of $36 per share, 265 shares of Stock Y at a price of $59 per share, and 330 shares of Stock Z at a price of $82 per share. What is the portfolio weight of Stock Y?

Suppose you own stock in a company. The current price per share is $25. Another company...

Suppose you own stock in a company. The current price per share is $25. Another company has just announced that it wants to buy your company and will pay $35 per share to acquire all the outstanding stock. Your company’s management immediately begins ﬁghting off this hostile bid. Is management acting in the shareholders’ best interests? Why or why not?

You own 1,100 shares of stock in Avondale Corporation. You will receive a $2.00 per share...

You own 1,100 shares of stock in Avondale Corporation. You will receive a $2.00 per share dividend in one year. In two years, the company will pay a liquidating dividend of $75 per share. The required return on the company's stock is 20 percent. a. Ignoring taxes, what is the current share price of your stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)(Show work) b. If you would rather have equal...

You own 1,100 shares of stock in Avondale Corporation. You will receive a $1.80 per share...

You own 1,100 shares of stock in Avondale Corporation. You will receive a $1.80 per share dividend in one year. In two years, the company will pay a liquidating dividend of $45 per share. The required return on the company's stock is 20 percent. a. Ignoring taxes, what is the current share price of your stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If you would rather have equal dividends...

You own 1,100 shares of stock in Avondale Corporation. You will receive a $2.00 per share...

You own 1,100 shares of stock in Avondale Corporation. You will receive a $2.00 per share dividend in one year. In two years, the company will pay a liquidating dividend of $48 per share. The required return on the company's stock is 20 percent. a. Ignoring taxes, what is the current share price of your stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If you would rather have equal dividends in...

Company A currently has a stock price $20/per share, with outstanding shares 2 Mil shares. It...

Company A currently has a stock price $20/per share, with outstanding shares 2 Mil shares. It also has outstanding debt of 20 Mil. Tax rate is 30%. Its annual bond with 10 year maturity date has a price now $886, par value $1000 and coupon rate is 7%. It has a beta of risk 1.2, risk free rate 4% and market index return 9%. Please answer following parts with above information Part1) what is the cost of debt before tax?...

You own 1,000 shares of stock in Avondale Corporation. You will receive $3.115 per share cash...

You own 1,000 shares of stock in Avondale Corporation. You will receive $3.115 per share cash dividend in one year. In two years, the company will pay a liquidating dividend of $57 per share. The required return on the company’s stock is 15 percent. What is the current price of your stock? (Ignore taxes). If you would rather have equal dividends in each of the next two years, show how you can accomplish this by creating homemade dividends (Hint: dividends...

Suppose you bought 100 shares of stock at an initial price of $37 per share. The...

Suppose you bought 100 shares of stock at an initial price of $37 per share. The stock paid a dividend of $0.28 per share during the following year, and the share price at the end of the year was $41. (1) What is your total dollar return on this investment? (2) What is the percentage return on the investment?

Suppose you bought 550 shares of stock at an initial price of $50 per share. The...

Suppose you bought 550 shares of stock at an initial price of $50 per share. The stock paid a dividend of $0.54 per share during the following year, and the share price at the end of the year was $45. a. Compute your total dollar return on this investment. (A negative value should be indicated by a minus sign.) b. What is the capital gains yield? (A negative value should be indicated by a minus sign. Do not round intermediate...

Subjects