Question: Red Rocks Corporation RRC currently has 425 000 shares of stock

Red Rocks Corporation (RRC) currently has 425,000 shares of stock outstanding that sell for $80 per share. Assuming no market imperfections or tax effects exist, what will the share price be 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).

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  • CreatedMarch 13, 2014
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