Porticade Corp.has 400,000 shares of common share outstanding, a P/E ratio of 8 and $500,000 available for common shareholders.The board of directors has just voted a 3−2 share split.
a.If you had 100 shares before the split, how many shares will you have after the split?
b.What was the total value of your investment in Porticade share before the split?
c.What should be the total value of your investment in Porticade share after the split?
d.In view of your answers to (b)and (c)above, why would a firm's management want to have a share split?

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The Answer of Porticade Corp.has 400,000 shares of common share outstanding, a P/E ratio of 8 and $500,000 available for common shareholders.The board of directors has just voted a 3−2 share split.
a.If you had 100 shares before the split, how many shares will you have after the split?
b.What was the total value of your investment in Porticade share before the split?
c.What should be the total value of your investment in Porticade share after the split?
d.In view of your answers to (b)and (c)above, why would a firm's management want to have a share split?