*** Please Show All Work ***Jersey Mining earns $9.50 a share, sells f
QUESTION
*** Please Show All Work ***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 firms total earnings do not change, what is the payout rat
a) Split 2:1 After split, div should be $6/2 = $3 which is the case. Hence, Price after split, $90/2 = $45 (ANSWER) b) Before split : Earning, E = $9.5 per share Div, D = $6 Payout = D/E =
6/9.5 *100 = 63.16% (ANSWER) After split : E = $9.5/2 = $4.75 per share D = $3 Payout = D/E = 3/4.75 *100 = 63.16 % (ANSWER)
ANSWER:
Expert paper writers are just a few clicks away
Place an order in 3 easy steps. Takes less than 5 mins.