Problem 17-4 Stock Splits and Stock Dividends [LO3]

Red Rocks Corporation (RRC) currently has 465,000 shares of stock outstanding that sell for $60 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? (Round your answer to 2 decimal places. (e.g., 32.16))

New share price

$

b.	RRC has a 10 percent stock dividend? (Round your answer to 2 decimal places. (e.g., 32.16))

New share price

$

c.	RRC has a 50.5 percent stock dividend? (Round your answer to 2 decimal places. (e.g., 32.16))

New share price

$

d.	RRC has a four-for-seven reverse stock split? (Round your answer to 2 decimal places. (e.g., 32.16))

New share price

$

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

a.	New shares outstanding
b.	New shares outstanding
c.	New shares outstanding
d.	New shares outstanding