Determine the new number of shares outstanding


Stock Splits and Stock Dividends Red Rocks Corporation (RRC) currently has 250,000 shares of stock outstanding that sell for $75 per share. Assuming no market imperfections or tax effects exist, what will the share price the after.

a. RRC has a five-for-three stock split?
b. RRC has a 15 percent stock dividend?
c. RRC has a 42.5 percent stock dividend?
d. RRC has a four-for-seven reverse stock split?

Determine the new number of shares outstanding in parts (a) through (d)

Solution Preview :

Prepared by a verified Expert
Finance Basics: Determine the new number of shares outstanding
Reference No:- TGS0679891

Now Priced at $10 (50% Discount)

Recommended (99%)

Rated (4.3/5)