Jersey Medical earns $9.00 a share, sells for $100, and pays a $7 per share dividend. The stock is split two for one and a $3.5 per share cash dividend is declared. What will be the new price of the...

Jersey Medical earns $9.00 a share, sells for $100, and pays a $7 per share dividend. The stock is split two for one and a $3.5 per share cash dividend is declared.

1. 
   

   What will be the new price of the stock? Round your answer to the nearest dollar.

   
   

   $

   
   


2. 
   

   If the firm's total earnings do not change, what is the payout ratio before and after the stock split? Round your answers to one decimal place.

   
   

   Payout ratio before the split:   %

   
   

   Payout ratio after the split:   %