Essentials of Corporate Finance with Connect
9th Edition
ISBN: 9781259697456
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Bradford D Jordan Professor
Publisher: McGraw-Hill Education
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Bermuda Triangle Corporation (BTC) currently has 370,000 shares of stock outstanding
that sell for $100 per share. Assume no market Imperfections or tax effects exist.
Determine the share price and new number of shares outstanding if: (Do not round
intermediate calculatlons. Round your prlce per share answers to 2 decimal places,
e.g., 32.16, and shares outstanding answers to the nearest whole number, e.g., 32.)
a. BTC has a five-for-three stock split.
b. BTC has a 12 percent stock dividend.
c. BTC has a 38.0 percent stock dividend.
d. BTC has a four-for-seven reverse stock split.
a. Price per share
Shares outstanding
b. Price per share
Shares outstanding
c. Price per share
Shares outstanding
d. Price per share
Shares outstanding
Simmons Mineral Operations, Inc., (SMO) currently has 430,000 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 four-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 10 percent stock dividend? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
New share price
$
c.
SMO has a 43.5 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…
Stock Splits and Stock Dividends. Bermuda Triangle Corporation (BTC)
currently has 500,000 shares of stock outstanding that sell for $83 per share.
Assuming no market imperfections or tax effects exist, what will the share price
be after:
a. BTC has a five-for-three stock split?
b. BTC has a 15 percent stock dividend?
BTC has a 42.5 percent stock dividend?
d. BTC has a four-for-seven reverse stock split?
C.
e.
Determine the new number of shares outstanding in parts (a) through (d).
Chapter 14 Solutions
Essentials of Corporate Finance with Connect
Ch. 14.1 - Prob. 14.1ACQCh. 14.1 - Prob. 14.1BCQCh. 14.1 - Prob. 14.1CCQCh. 14.2 - Prob. 14.2ACQCh. 14.2 - Prob. 14.2BCQCh. 14.2 - Prob. 14.2CCQCh. 14.3 - Prob. 14.3ACQCh. 14.3 - Prob. 14.3BCQCh. 14.5 - Prob. 14.5ACQCh. 14.5 - Prob. 14.5BCQ
Ch. 14 - What are the forms of cash dividends?Ch. 14 - Prob. 14.2CCh. 14 - Prob. 14.3CCh. 14 - Prob. 14.4CCh. 14 - Prob. 14.5CCh. 14 - Prob. 1CTCRCh. 14 - Prob. 2CTCRCh. 14 - Prob. 3CTCRCh. 14 - Prob. 4CTCRCh. 14 - Prob. 5CTCRCh. 14 - Prob. 6CTCRCh. 14 - Prob. 7CTCRCh. 14 - Prob. 8CTCRCh. 14 - Dividend Policy. During 2014, 207 companies went...Ch. 14 - Prob. 10CTCRCh. 14 - Prob. 1QPCh. 14 - Prob. 2QPCh. 14 - Prob. 3QPCh. 14 - Prob. 4QPCh. 14 - Prob. 5QPCh. 14 - Stock Splits and Stock Dividends. Bermuda Triangle...Ch. 14 - Prob. 7QPCh. 14 - Prob. 8QPCh. 14 - Prob. 9QPCh. 14 - Prob. 10QPCh. 14 - Stock Splits. In the previous problem, suppose the...Ch. 14 - Prob. 12QPCh. 14 - Dividend Policy. The Quick Buck Company is an...Ch. 14 - Expected Return, Dividends, and Taxes. The Gecko...Ch. 14 - Prob. 15QPCh. 14 - Prob. 1CCCh. 14 - Prob. 2CCCh. 14 - Prob. 3CCCh. 14 - Prob. 4CCCh. 14 - Prob. 5CCCh. 14 - Prob. 6CC
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