Roll Corporation (RC) currently has 365,000 shares of stock outstanding that sell for $87 per share. Assuming
Question:
Roll Corporation (RC) currently has 365,000 shares of stock outstanding that sell for $87 per share. Assuming no market imperfections or tax effects exist, what will the share price be after:
a. RC has a 5-for-3 stock split?
b. RC has a 15 percent stock dividend?
c. RC has a 42.5 percent stock dividend?
d. RC has a 4-for-7 reverse stock split?
Determine the new number of shares outstanding in parts (a) through (d).
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Step by Step Answer:
To find the new stock price we multiply the current stock price by the rat...View the full answer
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Related Book For 
Corporate Finance Core Principles And Applications
ISBN: 9781260571127
6th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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