Simmons Mineral Operations, Inc., (SMO) currently has 445,000 shares of stock ou

Question

Simmons Mineral Operations, Inc., (SMO) currently has 445,000 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:

SMO has a five-for-three stock split? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

SMO has a 25 percent stock dividend? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

SMO has a 46.5 percent stock dividend? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

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.)

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.)

Simmons Mineral Operations, Inc., (SMO) currently has 445,000 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:

Explanation / Answer

Details Current Situation 5 for 3 stock split   25% stock dividend 46.5% stock dividend 3 for seven reverse stock split Current shares outstanding                445,000 Share Price current                             80 Market Capitalization          35,600,000     35,600,000 35,600,000     35,600,000 35,600,000 New No of Shares outstanding           741,667         556,250           651,925         190,714 New Share Price = Market Capitalization/New no of shares= $           48.00 $         64.00 $           54.61 $       186.67

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