Bermuda Triangle Corporation (BTC) currently has 420,000 shares of stock outstanding that sell for $94 per share.

Question:

Bermuda Triangle Corporation (BTC) currently has 420,000 shares of stock outstanding that sell for $94 per share. Assuming no market imperfections or tax effects exist, what will the share price be after:

a. BTC has a five-for-three stock split?

b. BTC has a 15 percent stock dividend?

c. BTC has a 42.5 percent stock dividend?

d. BTC has a four-for-seven reverse stock split?

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

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...