Chaney’s Fatburner Gyms, Inc. operates a chain of exercise facilities throughout the Midwest. The firm appeals to middle-aged men who suffer from obesity problems and want to improve their health by entering an exercise program. The firm currently has 8,000,000 shares of stock outstanding that have a current market price of $12. If all else remains constant, what will be the price of Chaney’s shares after each of the following?
a. A 20 percent stock dividend.
b. A four-for-one stock split.
c. A 32.5 percent stock dividend.
d. What would be the total number of shares outstanding after parts a through c?

  • CreatedOctober 31, 2014
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