Simmons Mineral Operations, Inc., (SMO) currently has 490,000 shares of stock outstanding that sell for $73 per
Question:
Simmons Mineral Operations, Inc., (SMO) currently has 490,000 shares of stock outstanding that sell for $73 per share. Assuming no market imperfections or tax effects exist, what will the share price be after:
a. SMO has a five-for-three stock split?
b. SMO has a 15 percent stock dividend?
c. SMO has a 42.5 percent stock dividend?
d. SMO 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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Step by Step Answer:
Given data Shares outstanding 490000 Stock price 7300 a Stock split 5 for 3 ...View the full answer
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Related Book For 
Fundamentals of Corporate Finance
ISBN: 978-0077861704
11th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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