Red Rocks Corporation (RRC) currently has 350,000 shares of stock outstanding that sell for $90 per share.

Question:

Red Rocks Corporation (RRC) currently has 350,000 shares of stock outstanding that sell for $90 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).

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...