Question
Red Rocks Corporation (RRC) currently has 250,000 shares of stock outstanding that sell for $75 per share. First, determine the number of shares outstanding and
Red Rocks Corporation (RRC) currently has 250,000 shares of stock outstanding that sell for $75 per share. First, determine the number of shares outstanding and second, what the approximate share price should be after each of the following. Assume that signaling, market imperfections, and taxes are not factors. Also, assume that each of the events in a, b, and c are separate and independent of each other.
1-RRC has a 5-for-3 stock split.
2-RRC has 15% stock dividend
3-RRC has a 4-for-7 reverse stock split
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Empirical Finance
Authors: Sardar M. N. Islam, Sethapong Watanapalachaikul
1st Edition
3790815519, 978-3790815511
