HQ Company is considering a 1-for-3 revers stock split. HQ's stock is currently selling for $3 per share.
a. What will the price of the stock be after the stock split?
b. HQ planes to pay dividend equal to $0.30 per share after the split. The company would like to pay an equivalent dividend per share even if the split does not take place. What would the per-share dividend have to be if the HQ doesn't split the stock?
Please SHOW WORK
HQ Company is considering a 1-for-3 revers stock split. HQ's stock is currently selling for $3 per share.
a. What will the price of the stock be after the stock split?
b. HQ planes to pay dividend equal to $0.30 per share after the split. The company would like to pay an equivalent dividend per share even if the split does not take place. What would the per-share dividend have to be if the HQ doesn't split the stock?
Please SHOW WORK
Related questions
Dividend policy please help
se common stock currently sells for $20 per share
| Preferred stock | $500,000 |
| Common stock(2,000,000 shares@$1 | 2,000,000 |
| paid in capital in excess of par | 10,000,000 |
| retained earnings | 11,600,000 |
| total stockholders equity | $24,100,000 |
a) what is the maximum dividend per-share se can pay? ( assume capital includes all paid in capital)
b) recast the partial balance sheet(to Stockholders equity accounts) to show independently
1-a 2-for-1 stock split of the common stock
2-a cash dividend of $1.50 per share
3-a stock dividend of 5% on the common stock
c) at what price what you expect se stock to sell after
1-the stock split
2- the stock dividend?
