14.07.2022 - 21:40

Darden Inc. is contemplating a stock split. Darden’s current stock price is 45.00 per share, and it is considering a 3-for-2 stock split, A stock split is supposed to be only an accounting change that

Question:

Darden Inc. is contemplating a stock split. Darden’s current stock price is $45.00 per share, and it is considering a 3-for-2 stock split, A stock split is supposed to be only an accounting change that doesn’t affect a firm’s value directly. If the firm’s value is not affected by the stock split, what is Darden’s expected stock price after the split?

a. $22.50

b. $30.00

c. $37.50

d. $42.50

e. $67.50

Researchers have observed that stock prices often react positively after stock splits. They argue that the stock split is a signal that the firm expects continued growth. If Darden’s stock price results in a 5% increase in market capitalization, what is its expected stock price after the split?

a. $30.00

b. $31.50

c. $37.50

d. $45.00

e. $67.50

One of Darden’s managers has suggested an alternative to a stock split. He wants the company to pay a stock dividend to keep the stock price down. How many new shares would be awarded to an investor with 400 shares if a 4% stock dividend were carried out?

a. 4 shares

b. 16 shares

c. 32 shares

d. 40 shares

e. 160 shares

Answers (0)
  • Fannie
    April 5, 2023 в 01:34
    Darwin explained his theory of evolution in his book titled "On the Origin of Species", which was published in 1859. In this book, Darwin presented evidence for his theory of natural selection, which suggests that organisms with advantageous traits are more likely to survive and reproduce, passing those traits onto their offspring. This book revolutionized the way scientists thought about the history of life on Earth and is considered one of the most important scientific works ever published.
Do you know the answer?

Leave a comment

Not sure about the answer?
Find the right answer to the question Darden Inc. is contemplating a stock split. Darden’s current stock price is 45.00 per share, and it is considering a 3-for-2 stock split, A stock split is supposed to be only an accounting change that by subject Business, and if there is no answer or no one has given the right answer, then use the search and try to find the answer among similar questions.
Search for other answers
New questions in the category: Business
Authorization
*
*

Password generation