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Jersey Mining earns $9.50 a share, sells for $90, and pays a $6

Jersey Mining earns $9.50 a share, sells for $90, and pays a $6 per share dividend. The stock is split two for one and a $3 per share cash dividend is declared.

a. What will be the new price of the stock?
b. If the firm's total earnings do not change, what is the payout ratio before and after the stock split?

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New Price = Old price x Reciprocal Ratio of Stock Split

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Jersey Mining earns $9.50 a share, sells for $90, and pays a $6