Share of their common stock before the split

Assignment Help Financial Management
Reference no: EM131352793

Progressive Corporation executed a 3:1 (3 for 1) common stock split on April 23, 2002. What was most probably happening to the value of one share of their common stock BEFORE the split?

A. The stock price had gone up considerably (above $80) before the split

B. The stock price had gone down considerably before the split

C. The stock had reached its maturity date and the principal amount was paid

Progressive Corporation executed a 3:1 (3 for 1) common stock split on April 23, 2002. What almost certainly happened to the value of one share of their common stock IMMEDIATELY AFTER (or as a result of) the split.

A. The per-share stock price went down by the amount of the upcoming dividend

B. The per-share stock price went down to approximately 1/3 of its previous value per share

C. The per-share stock price went down to approximately ½ of its previous value per share

D. The per-share stock price went up to approximately 3 times its previous value per share

Progressive Corporation executed a 3:1 (3 for 1) common stock split on April 23, 2002. In general, why do companies split their stock 3 for 1?

To raise the per-share stock price

To lower the per-share stock price

To convert the shares into bonds

To earn cash to finance immediate business needs

Reference no: EM131352793

Questions Cloud

What are the risks and benefits of cloning : What are the risks and benefits of cloning? What are some potential uses for cloning? Could you envision using cloning technology in your own life? If so, how? What are some of the ethical problems with cloning?
Explain steps researchers took to ensure generalizability : Probability and nonprobability are the two general categories of sampling. Probability sampling uses random selection, whereas nonprobability sampling does not. For example, if you wanted to study the effects of divorce on the psychological develo..
What are the dimensions of the einstein a and b coefficients : In our analysis of emission and absorption processes of an atom in an electromagnetic field we neglected recoil effects. How does this affect our results? Are we justified in ignoring recoils?
Happening during time as the oxygen debt : Which of these cell types can be described as muscle cells that contract rapidly, are rich in glycogen deposists, and depend on anacrobic respiration to produce ATP? After a period of exercise, a person will breathe heavily for some time after the..
Share of their common stock before the split : Progressive Corporation executed a 3:1 (3 for 1) common stock split on April 23, 2002. What was most probably happening to the value of one share of their common stock BEFORE the split?
What policies at the local-state or federal level : What policies at the local, state or federal level (e.g., education, transportation, employment, etc.) might reduce social and economic inequities? (b) What would a more equitable society look like? (c) Who can make it happen?
Hypothesis for a heterozygous dihybrid cross : What is the phenotypic ratio that can be used as a hypothesis for a heterozygous dihybrid cross (cross of heterozygotes for two traits) if the traits follow the properties of Mendelian inheritance?
What about the total spin angular momentum : Now consider the interactions between the electrons that are actually present. Can they change the conclusion about the total angular momentum of the subshell? What about the total spin angular momentum and total orbital angular momentum?
Specify three implications of deep understanding of culture : EDU 512- Specify two to three implications of a deep understanding of culture for teaching and learning. Provide examples to support your rationale.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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