Jersey Medical earns $10.00 a share, sells for $70, and pays a $4 per share...
80.2K
Verified Solution
Link Copied!
Question
Finance
Jersey Medical earns $10.00 a share, sells for $70, and pays a $4 per share dividend. The stock is split two for one and a $2 per share cash dividend is declared.
What will be the new price of the stock? Round your answer to the nearest dollar.
$ _____________
If the firm's total earnings do not change, what is the payout ratio before and after the stock split? Round your answers to one decimal place.
Payout ratio before the split: ____________ %
Payout ratio after the split: ___________ %
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
