Suppose the stock of Host Hotels & Resorts is currently trading for $25 per shar

Question

Suppose the stock of Host Hotels & Resorts is currently trading for $25 per share. a. If Host issued a 20% stock dividend, what will its new share price be?

b. If Host does a 3: 2 stock split, what will its new share price be?

c. If Host does a l : 3 reverse split, what will its new share price be?

a. If Host issued a 20% stock dividend, what will its new share price be?

If Host issued a 20% stock dividend, the share price will be $__per share. (Round to the nearest cent.)

b.If Host does a 3 : 2 stock split, what will its new share price be?

If Host does a 3: 2 stock split, the share price will be $__ per share. (Round to the nearest cent.)

c. If Host does a l : 3 reverse split, what will its new share price be?

lf Host does a 1 : 3 reverse split, the share price will be $__ per share. (Round to the nearest cent.)

Explanation / Answer

a)New price = 25 / (1+.20)

                      = 25 / 1.20

                     = $ 20.83 per share

b)new price = 25 *2/3

                    = 16.67 per share

c) New price = 25 *3/1

                       = $ 75 per share

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