Company overall market value to change due to the split

Assignment Help Financial Management

Reference no: EM131188231

When Tandy (RadioShack) Corporation announced a 2:1 stock split, the company had 97 million shares outstanding, trading at $100 per share.a. Estimate the number of shares outstanding and market price per share immediately after the split.b. Estimate the company's overall market value, and explain whether you expect the company's overall market value to change due to the split.

Reference no: EM131188231

Questions Cloud

What types of risks should shareholder wealth : What types of risks should shareholder wealth-maximizing managers seek to offset in a firm they are managing? Why? How can patents, copyrights, and legal challenges be used to manage business risk?

Determine the present value of the stream : An owner can lease her building for $120,000 per year for three years. The explicit cost of maintaining the building is $40,000, and the implicit cost is $55,000. All revenues are received, and costs borne, at the end of each year. If the interest ra..

Bz380 management information systems : Discuss telecommunication operations and three (3) security measures to ensure protection of information. List and describe the organizational, management, and technology dimensions of information systems.

What is its cost of common equity : Cost of Common Equity and WACC Patton Paints Corporation has a target capital structure of 45% debt and 55% common equity, with no preferred stock. Its before-tax cost of debt is 11% and its marginal tax rate is 40%. The current stock price is P0 = $..

Company overall market value to change due to the split : When Tandy (RadioShack) Corporation announced a 2:1 stock split, the company had 97 million shares outstanding, trading at $100 per share.a. Estimate the number of shares outstanding and market price per share immediately after the split.b. Estimate ..

Production cash outflow : Production cash outflow. National Beverage Company produces its products two months in advance of anticipated sales and ships to warehouse centers the month before sale. The inventory safety stock is 10% of the anticipated month’s sale.

Credit sales for customers with and without credit screening : ABC Inc. is starting up its new, cost-efficient gaming system console. ABC Inc. currently has 4,000 cash-paying customers and makes a profit of $80 per unit. ABC Inc. wants to expand its customer base by allowing customers to buy on credit. What are ..

Value of the company due to expected bankruptcy costs : Dragula, Inc., has debt outstanding with a face value of $5 million. The value of the firm if it were entirely financed by equity would be $18 million. The company also has 390,000 shares of stock outstanding that sell at a price of $37 per share. Th..

Compute the amount of cost to be placed in the land : Firton Brothers purchased for $90,000 a tract of land that included an abandoned warehouse. The warehouse was razed, and the site was prepared for a new building at a cost of $10,000. Scrap materials from the warehouse were sold for $7,000. Compute t..

User Account

All Pages