11.Microsoft is currently trading at $36 per share. You have 10,000 shares of Mi
ID: 2765293 • Letter: 1
Question
11.Microsoft is currently trading at $36 per share. You have 10,000 shares of Microsoft. The company is going to announce a 3-1 stock split to the public. What is the total value of your stock after the stock split?
A. $120,000
B. $720,000
C. $240,000
D. $360,000
12.If a company wants to triple its stock price overnight, which of the following method is the best choice?
33% stock dividend
3-1 stock split
Cash dividend
1-3 stock split
PLEASE ANSWER ALL QUESTIONS
A.33% stock dividend
B.3-1 stock split
C.Cash dividend
D.1-3 stock split
Explanation / Answer
11 .Market price = $ 36
No of shares = 10,000
Stock split = 3-1
=10,000 x 3=30,000 shares
Market price =36/3 = 12
Total value =30,000 x 12
=$120,000
-----------------------------------------------------------------------------------
12 .To triple the stock price we need to split down the stock ,hence we need to issue 1 share for every 3 shares
D=1-3stock split
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.