Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Simmons Mineral Operations, Inc., (SMO) currently has 445,000 shares of stock outstanding that sell for $80 per share. Assuming no market imperfections or tax effects

Simmons Mineral Operations, Inc., (SMO) currently has 445,000 shares of stock outstanding that sell for $80 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? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

New share price $

b.

SMO has a 25 percent stock dividend? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

New share price $

c.

SMO has a 46.5 percent stock dividend? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

New share price $

d.

SMO has a three-for-seven reverse stock split? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

New share price $

e.

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

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

Financial Management Principles And Practices

Authors: Sudhindra Bhat

2nd Edition

8174465863, 978-8174465863

More Books

Students also viewed these Finance questions