1. An initial public offering refers to:
A. the shares held by a firm's founder.
B. the most recently issued shares that were offered to the firm’s existing shareholders.
C. any shares issued to the public on a cash basis.
D. the first sale of equity shares to the general public.
E. all shares issued prior to the firm going public.
2. B Corp. currently has 465,000 shares of stock outstanding that sell for $86 per share. Assuming no market imperfections or tax effects exist, what will the share price be after:
a. B Corp. has a five-for-three stock split?
b. B Corp. has a 15 percent stock dividend?
c. B Corp. has a four-for-seven reverse stock split?
d. Determine the new number of shares outstanding in parts (a) through (c).