a. Zebra Corporation currently has 2,500,000 shares of stock outstanding that sell for RM45 per share. Assuming no market imperfections or tax effects exist, determine the share price beafter:

1. Zebra has a six-for-two stocksplit.
2. Zebra has a 17% stockdividend.
3. Zebra has a 35% stockdividend.
4. Zebra has a four-for-seven reverse stocksplit.
5. Determine the new number of shares outstanding in part (i)through (iv).

b. You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner. The scanner costs RM6,300,000 and it would be depreciated straight-line to zero over four years. You can lease it for RM1,745,000 per year for four years. Assume that the tax rate is 36%. You can borrow at 8% before taxes. Justify whether you should lease orbuy.