Rooster Rocks Corporation (RRC) currently has 100,000 shares of stock outstanding that sell for $70 per share.

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Rooster Rocks Corporation (RRC) currently has 100,000 shares of stock outstanding that sell for $70 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?

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

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Fundamentals Of Corporate Finance

ISBN: 9780072553079

6th Edition

Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan

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Question Posted: Oct 04, 2023 02:17 PM

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Rooster Rocks Corporation (RRC) currently has 100,000 shares of stock outstanding that sell for $70 per share.

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Lets calculate the share price after each scenario and determine the new number of shares outstanding a FiveforThree Stock Split A fiveforthree stock ...View the full answer

Fundamentals Of Corporate Finance

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