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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
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Phoniex University
Oct-2001 - Nov-2016
4.       Stock Splits and Stock Dividends   Red Rocks Corporation (RRC) currently has 425,000 shares of stock outstanding that sell for $80 per share. Assuming no market imperfections or tax effects exist, what will the share price be after:
a.  RRC has a five-for-three stock split?
b.  RRC has a 15 percent stock dividend?
c.   RRC has a 42.5 percent stock dividend?
d.  RRC has a four-for-seven reverse stock split?
Determine the new number of shares outstanding in parts (a) through (d).
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