Neco 2018 Commerce Question 44

A company's shares are listed on the stock exchange. At the beginning of the year the company has 1,200,000 shares outstanding, each trading at \\(\text{₦}45\\). During the year the company issues a 10\\% bonus issue and later declares a 2‑for‑1 stock split. The company pays a total dividend of \\(\text{₦}3\\) per original share for the year. At the end of the year the share price is observed to be \\(\text{₦}28\\) (after the split). Compute:\n\n(a) The total number of shares outstanding after the bonus issue and the split.\n\n(b) The effective dividend per share after the split.\n\n(c) The weighted‑average price per share for the year, assuming the price remained at \(\text{₦}45\) up to the bonus issue (which occurred exactly halfway through the year), then was adjusted proportionally after the bonus issue, and finally halved after the split for the remaining half of the year.\n\n(d) The price‑earnings (P/E) ratio at year‑end if the company reported earnings of \(\text{₦}12\) per original share for the year.