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Stock Splits and Stock Dividends [ LO 3 ] Red Rocks Corporation ( RRC ) currently has 4 2 5 , 0 0 0 shares

Stock Splits and Stock Dividends [LO3] Red Rocks Corporation (RRC) currently has 425,000 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. RRC has a fi ve-for-three stock split? b. RRC has a 15 percent stock dividend? c. RRC has a 42.5 percent stock dividend? d. RRC has a four-for-seven reverse stock split? Determine the new number of shares outstanding in parts (a) through (d).

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