Bermuda Triangle Corporation (BTC) currently has 590,000 shares of stock outstan

Question

Bermuda Triangle Corporation (BTC) currently has 590,000 shares of stock outstanding that sell for $92 per share. Assuming no market imperfections or tax effects exist. Determine the share price and new number of shares outstanding if: (Do not round intermediate calculations. Round your price per share answers to 2 decimal places (e.g., 32.16) and shares outstanding to the nearest whole number (e.g., 32).): BTC has a five-for-three stock split. BTC has a 14 percent stock dividend. BTC has a 40.0 percent stock dividend. BTC has a four-for-seven reverse stock split.

Explanation / Answer

<<<a) a five for three split>>>

The share price will 92 x 3 / 5
The number of shares will be 590000 x 5 / 3 = 983,333

<<<b) 14 percent stock dividend>>>

The share price will 92 / 1.14
The number of shares will be 590000 x 1.14 = 672,600

<<<c) 40 percent stock dividend>>>

The share price will 92 / 1.40
The number of shares will be 590,000 x 1.4 = 826,000

<<<d) four for seven reverse stock split>>>

The share price will 92 x 7 / 4
The number of shares will be 590,000 x 4 / 7 = 337,143

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