Purchase Solution

# Stock Split and Stock Dividend Valuations

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Roll Corporation (RC) currently has 159,000 shares of stock outstanding that sell for \$56 per share. Assume no market imperfections or tax effects exist.

Question:
Determine the share price and new number of shares outstanding if. Round your price per share to 2 decimal places. (e.g., 32.16) and other values to the nearest whole dollar amount. (e.g., 32)):

(a) RC has a five-for-one stock split.

Price per share: \$__________
Shares outstanding: __________

(b) RC has a 13 percent stock dividend.

Price per share: \$ _____________
Shares outstanding: ____________

(c) RC has a 44 percent stock dividend.

Price per share: \$___________
Shares outstanding: ___________

(d) RC has a two-for-three reverse stock split.

Price per share: \$____________
Shares outstanding: __________.

##### Solution Summary

The attached file contains detailed instructions in regards to the necessary calculations to determine price per share and shares outstanding for stock splits and stock dividends.

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