mvFSU-Central Authent x Chega Study | Guided So × y Chapter 17 Homework Dezto.mh

Question

mvFSU-Central Authent x Chega Study | Guided So × y Chapter 17 Homework Dezto.mheducation.com/hm.tpx 2 Simmons Mineral Operations, Inc., (SMO) currently has 490,000 shares of stock outstanding that sell for $50 per share. Assuming no market imperfections or tax effects exist, what will the share price be after: a. SMO has a five-for-three stock split? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) New share price b. SMO has a 20 percent stock dividend? (Do not round intermediate calculations. Round youn answer to 2 decimal places, e.g., 32.16.) New share price c. SMO has a 55.5 percent stock dividend? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) New share price d. SMO has a three-for-seven reverse stock split? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) New share price e. Determine the new number of shares outstanding in parts (a) through (d). (Do not round intermediate calculations and round your answer to the nearest whole dollar amount, e.g., 32.) a. New shares outstanding b. New shares outstanding c. New shares outstanding d. New shares outstanding 4:58 PM 12/7/2015

Explanation / Answer

1) Price after stock split = 50 * 3/5 = 30per share

2) Market value before stock split = 490,000 * 50 = $ 24,500,000

Number of shares after stock dividend = 490,000 + (490,000*20%) = 588000

price per share= 24,500,000 / 588,000 = $ 41.67 per share

3)Number of shares after stock dividend = 490,000 + (490,000 *55.5%) = 761950

Price per share = 24,500,000 / 761950 = $32.15 per share

4)new price = 50 *7/3 = 116.67 per share

5)a) Number of shares = 490,000 *5 /3 = 816666.67 shares   (approx 816667 shares)

Number of shares = 588,000    (part b) calculated

Number of shares = 761950 shares

Number of shares = 490,000 * 3/ 7 = 210000 shares

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.