Companies Sometimes Consider Stock Splits To Bring Down The Price So That The Stock Attracts More Purchases Consider Th 1 (98.17 KiB) Viewed 15 times
Companies sometimes consider stock splits to bring down the price so that the stock attracts more purchases. Consider the following case: Mainway Toy Company currently has 30,000 shares of common stock outstanding. Its management believes that its current stock price of $110 per share is too high. The company is planning to conduct stock splits in the ratio of 4 for 1 as described in the animation. 4 for 1 Stock split announcement 8.8 Bertificate of Stack $3 www Ecrilicate of Stack $3 KAAR JAAR Actificate of Stack $3 Exctificate of Stace $3 0
If Mainway Toy Company declares a 4-for-1 stock split, the price of the company's stock after the split, assuming that the total value of the firm's stock remains the same after the split, will be $55.00 Scorecard Athletics Corp. is one of Mainway's I plans of announcing a stock split, influencing t its shareholders. petitors. Scorecard Athletics Corp.'s market intelligence research team shares Mainway's ion policy makers. Consequently, executives at Scorecard decide to offer stock dividends to $27.50 $440.00 from going too high. Scorecard currently has 1,300,000 shares of common stock A stock dividend is another way of keeping the outstanding. $220.00 $36.67 If the firm pays a 5% stock dividend, how many snares will the firm issue to its existing shareholders? O 48,750 shares O 65,000 shares O 68,250 shares O 71,500 shares
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