Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Roll Corporation (RC) currently has 440,000 shares of stock outstanding that sell for $70 per share. Assuming no market imperfections or tax effects exist, what

Roll Corporation (RC) currently has 440,000 shares of stock outstanding that sell for $70 per share. Assuming no market imperfections or tax effects exist, what will the share price be after:
a. RC has a four-for-three stock split? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b. RC has a 10 percent stock dividend? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
c. RC has a 45.5 percent stock dividend? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
d. RC has a three-for-seven reverse stock split? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
e.

Determine the new number of shares outstanding in parts (a) through (d). (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)

a. New share price
b. New share price
c. New share price
d. New share price
e. Part (a) new shares outstanding
Part (b) new shares outstanding
Part (c) new shares outstanding
Part (d) new shares outstanding

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions

Question

Show that if n is a positive integer, then (2j-1/n(n1)/2

Answered: 1 week ago