Question
(Stock splits and stock dividends)Chaney's Fatburner Gyms, Inc. operates a chain of exercise facilities throughout the Midwest. The firm appeals to middle-aged men who suffer
(Stock splits and stock dividends)Chaney's Fatburner Gyms, Inc. operates a chain of exercise facilities throughout the Midwest. The firm appeals to middle-aged men who suffer from obesity problems and want to improve their health by entering an exercise program. The firm currently has 8 comma 000 comma 000 shares of stock outstanding that have a current market price of $11.08. If all else remains constant, what will be the price of Chaney's shares after each of the following?
a.A stock dividend of 20.8 percent.
b.A four-for-one stock split.
c.A stock dividend of 32.6 percent.
d.What would be the total number of shares outstanding after a through c?
a.The price of Chaney's shares after a stock dividend of 20.8 % will be $
(Round to the nearest cent.)
b.The price of Chaney's shares after a four-for-one stock split will be $
(Round to the nearest cent.)
c. The price of Chaney's shares after a stock dividend of 32.6 % will be $
nothing. (Round to the nearest cent.)
d.The total number of shares outstanding after the stock dividend of 20.8 % is
shares.(Round to the nearest integer.)
The total number of shares outstanding after the four-for-one stock split is
shares.(Round to the nearest integer.)
The total number of shares outstanding after the stock dividend of 32.6 % is
shares.(Round to the nearest integer.)
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