XYZ Corporation has 400,000 shares of ordinary shares outstanding,a P/E ratio of 8,and $500,000 available for ordinary 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 XYZ shares before the split?
c.What should be the total value of your investment in XYZ shares 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 XYZ Corporation has 400,000 shares of ordinary shares outstanding,a P/E ratio of 8,and $500,000 available for ordinary 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 XYZ shares before the split?
c.What should be the total value of your investment in XYZ shares 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?

XYZ Corporation Has 400,000 Shares of Ordinary Shares Outstanding,a P/E