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.
... (c) It is important to note that dividend increases frequently accompany stock splits. ... (d) Finally, a stock split may increase trading activity in a ...
...Dividends & Splits Annual Dividend: N/A Dividend Yield: 0.00 ... new per old)²: N/A Last Split Date: N ... The expert compares the performance of two stocks; NVR and TOL ...
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... If Nott declares $600,000 of dividends in the current year, how much ...Stock Dividend Stock Split a. Increase No effect b. No effect No effect c. Decrease ...
... to avoid paying taxes on the dividends that they ... to stock price, option value, horizon value, dividend payout ratio, value of operation, stock split price ...
