This paper concentrates on the primary theme of GLOBAL FINANCIAL CORPORATION (GFC) HAS 10 MILLION SHARESOUTSTANDING, EACH CURRENTLY WORTH $80 PER S in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 40. For more details and full access to the paper, please refer to the site.
Global Financial Corporation (GFC) has 10 million shares outstanding, each currently worth $80 per share. The firmAc€?cs mangers are considering a plan to split the companyAc€?cs stock 2-for-1, but they are concerned about the impact this split announcement will have on the firmAc€?cs stock price.
a. If GFCAc€?cs mangers announce a 2-for-1 stock split, what exactly will the company do, and what will GFCAc€?cs stock price likely be after the split?
b. How many total shares of GFC stock will be outstanding after the split?
c. If GFCAc€?cs mangers believe that the ideal stock price for the firmAc€?cs shares is $20 per share, what should they do? How many shares would be outstanding after this action?
d. Why do you think GFCAc€?cs managers are considering a stock split?