Question 4.

Peter 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?

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

Answers in excel