help plz Red Rocks Corporation (RRC) currently has 515,000 shares of stock outst

Question

help plz

Red Rocks Corporation (RRC) currently has 515,000 shares of stock outstanding that sell for $40 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? (Round your answer to 2 decimal places. (e.g., 32.16)) New share price $ b. RRC has a 15 percent stock dividend? (Round your answer to 2 decimal places. (e.g., 32.16 New share price $ c. RRC has a 44.5 percent stock dividend? (Round your answer to 2 decimal places. (e.g., 32.16)) New share price $ d. RRC has a two-for-seven reverse stock split? (Round your answer to 2 decimal places. (e.g., 32.16)) New share price $ Determine the new number of shares outstanding in parts (a) through (d). a. New shares outstanding b. New shares outstanding c. New shares outstanding d. New shares outstanding

Explanation / Answer

Answer a. Sell price 40 Value of 3 stock 120 Value of stock after split (120/5) 24 No of new stock 858333 Answer b. Quantity Rate Value No of stock before stock dividend 515000 40 20600000 15% stock dividend 77250 0 0 No of Stock after stock dividend 592250 34.78261 20600000 New Share price= 34.78 Answer c. Quantity Rate Value No of stock before stock dividend 515000 40 20600000 44% stock dividend 226600 0 0 No of Stock after stock dividend 741600 27.77778 20600000 New Share price= 27.79 stock price 40 New Price (40*7/2) 140 No of new stock 147143 No of shares outstanding Case a 858333 case b 592250 case c 741600 case d 147143

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