Determine the new number of shares outstanding


Response to the following problem:

Roll Corporation (RC) currently has 260,000 shares of stock outstanding that sell for $78 per share. Assuming no market imperfections or tax effects exist, what will the share price be after:

RC has a five-for-three stock split?

RC has a 15 percent stock dividend?

RC has a 42.5 percent stock dividend?

RC has a four-for-seven reverse stock split?

Determine the new number of shares outstanding in parts (a) through (d).

 

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Financial Accounting: Determine the new number of shares outstanding
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