No market imperfections or tax effects exist

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Reference no: EM131354556

1. An initial public offering refers to:

A. the shares held by a firm's founder.

B. the most recently issued shares that were offered to the firm’s existing shareholders.

C. any shares issued to the public on a cash basis.

D. the first sale of equity shares to the general public.

E. all shares issued prior to the firm going public.

2. B Corp. currently has 465,000 shares of stock outstanding that sell for $86 per share. Assuming no market imperfections or tax effects exist, what will the share price be after:

a. B Corp. has a five-for-three stock split?

b. B Corp. has a 15 percent stock dividend?

c. B Corp. has a four-for-seven reverse stock split?

d. Determine the new number of shares outstanding in parts (a) through (c).

Reference no: EM131354556

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