Common stock market price per share

Assignment Help Financial Management
Reference no: EM13930081

KLM Corp. common stock is currently selling for $8 a share. Due to NYSE listing requirements, KLM decided to declare a non-discretionary 2-for-5 reverse stock split. As a result of the split, KLM common stock market price per share will be _____, all else constant.

$40

$24

$20

$32

$16

Reference no: EM13930081

Questions Cloud

Interest is paid semiannually-the price of the bond : A bond is issued at par ($1,000.00) and has 10 years remaining to maturity. The bond bears interest at 7% and the yield to maturity (YTM) is 6%. Interest is paid semiannually. The price of the bond is:
Are violent crimes distributed uniformly : Are Violent Crimes Distributed Uniformly? Based on data from the Federal Bureau of Investigation, violent crimes in a recent year occurred with the distribution given in the accompanying table.
The object-oriented paradigm supports abstractions : 1) The Object-Oriented Paradigm supports abstractions through Classes. Classes are software-programming abstractions; they encapsulate a set of related attributes (data members) and behaviors (methods) while, at the same time, they hide essential det..
How many years will it take for you to be debt-free : You owe $2,000 on your credit card. The interest rate they offer is 19.6% interest compounded monthly. If you can only make the minimum monthly payment of $40 per month, how many years will it take for you to be debt-free?
Common stock market price per share : KLM Corp. common stock is currently selling for $8 a share. Due to NYSE listing requirements, KLM decided to declare a non-discretionary 2-for-5 reverse stock split. As a result of the split, KLM common stock market price per share will be _____, all..
Record in general journal format the adjusting entries : Record in general journal format the adjusting entries necessary to correct the unadjusted book balance.
Cost recovery deduction for acquisition of original artwork : Chang wants to claim a cost recovery deduction for the acquisition of original artwork to be hung in the reception area of her dental office. The paintings were specially chosen because of their tendency to relax the patients who would be viewing the..
What is a gene : The term "gene" was coined over a 100 years ago by Johansson and our understanding of what a gene is has obviously changed over the years with the advent of molecular biological techniques,
What determines the intrinsic value of financial security : What determines the intrinsic value of a financial security (ie. a stock, bond, etc)? - How is the intrinsic value arrived at? (ie. What kind of assumptions are required?) - How do we explain why analysts can come up with different valuations for the..

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the price of the call and put options

Find a call option and put option for a publicly traded company that have the same expiration date and exercise price. Calculate the price of the call and put options using the Black-Sholes pricing     model. Assume r = 1% and σ = .20

  Using straight-line depreciation-will have no salvage value

Daily enterprises is purchasing a 9.8 million machine. It will cost $47,000 to transport and install the machine. This machine has a depreciable life of five years using straight-line depreciation and will have no salvage value.

  Asymmetric have on the optimal level of leverage

What impact does asymmetric have on the optimal level of leverage? In your answer be sure to describe the implications of adverse selection and the lemons principle for equity issuance, as well as the empirical implications.

  What is the hospitals current receivables balance

A company has annual revenues of $14, 400,000. It has 2 major third party payers, and some of its patients are self payers. The hospital's patient account manager estimates that 10% of the hospital's billings are paid on day 30. 60% are paid on day 6..

  Learning curve-technology improvement-past performance

Past Performance: not correcting for weaknesses in past performance is a major trap. Specifically, what weaknesses should one look at, and try to correct in a new estimate? Learning Curve: How a work force improves its performance over time. Technolo..

  Calculate expected dividend yield-growth rate in dividends

You buy a share of The Ludwig Corporation stock for $22.30. You expect it to pay dividends of $1.01, $1.15, and $1.3094 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $29.62 at the end of 3 years. Calculate the growth rat..

  Injecting huge liquidity and there is no fear of inflation

We have the Fitzpatrick bond which has a convexity of 30, duration of 4, a ytm of 12% and a maturity of 25 years. The central bank is injecting huge liquidity and there is no fear of inflation. If the yields alter by 100 basis points, what would the ..

  Plan to improve operations with an eye for reducing costs

It is time for you to finalize your findings for your boss. He is expecting your analysis of your division's operations and to produce a plan to improve operations with an eye for reducing costs.

  Allowance for doubtful accounts has a debit balance

Allowance for Doubtful Accounts has a debit balance of $600 at the end of the year (before adjustment), and an analysis of accounts in the customers ledger indicates uncollectible receivables of $13,000. Which of the following entries records the pro..

  What is the dollar amount of income

London purchased a piece of real estate last year for $85,900. The real estate is now worth $102,000. If London needs to have a total return of 0.23 during the year, then what is the dollar amount of income that she needed to have to reach her object..

  What if rates suddenly fall by two percent instead

Bond J has a coupon rate of 6 percent and Bond K has a coupon rate of 12 percent. Both bonds have 15 years to maturity, make semiannual payments, and have a YTM of 9 percent. If interest rates suddenly rise by 2 percent, what is the percentage price ..

  Find an expression for the value of this annuity

A twenty year annuity pays 2400 + 300k on the first day of the k-th month of the year. Thus it pays 2700 on January, 3000 on February 1...6000 each December 1. The first payment is on a January 1. Find an expression for the value of this annuity just..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd