Problem
Roll Corporation (RC) currently has 270,000 shares of stock outstanding that sell for $73 per share. Assuming no market imperfections or tax effects exist, what will the share price be after:
a. RC has a five-for-three stock split?
b. RC has a 15 percent stock dividend?
c. RC has a 42.5 percent stock dividend?
d. RC has a four-for-seven reverse stock split?
Required:
Question 1: Determine the new number of shares outstanding in parts (a) through (d). Please present complete computation and also provide full description.