1. Camden Co. completed a 3-for-2 stock split. Immediately prior to the split, its stock sold for $90 per share. The firm's total market value was unchanged by the split. Other things held constant, what is the best estimate of the stock's post-split price?
None of the above
$60
$45
$135
$30
2. A company is planning an IPO of 20 million shares. Each share is expected to sell at $12 per share. The investment banker will charge a 7% spread and incur expenses of $5 million. How much will the company receive if all shares sell at the expected price?
$240,000,000
$235,000,000
$223,200,000
$218,200,000