Three-for-seven reverse stock split

Assignment Help Financial Management

Reference no: EM132020176

Simmons Mineral Operations, Inc., (SMO) currently has 520,000 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 20 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 45.5 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 (a) through (d). (Do not round intermediate calculations and round your answer to the nearest whole dollar amount, e.g., 32.)

a. New shares outstanding

b. New shares outstanding

c. New shares outstanding

d. New shares outstanding

Reference no: EM132020176

Questions Cloud

Using the discounted cash flow approach : What is the estimated cost of retained earnings using the discounted cash flow (DCF) approach?

What is cost of existing debt : Flotation costs on new debt will be 7%. If the firm has a 35% marginal tax bracket, what is cost of existing debt?

What price would you estimate for halliford stock : If Halliford's equity cost of capital is 11.9 % what price would you estimate for Halliford stock?

What is the asset allocation in this case study : What is the asset allocation in this case study? What investment strategy should be taken based on the asset allocation?

Three-for-seven reverse stock split : SMO has a four-for-three stock split? SMO has a three-for-seven reverse stock split?

Compute the cost of new preferred stock : New issue of preferred stock would have $4 per share in flotation costs. The firm's tax rate is 40%. Compute the cost of new preferred stock.

Net present value of buying part instead of making : Assuming a discount rate of 4%, what is the net present value of buying the part instead of making it?

What is the firm current stock price : What is the firm’s expected dividend stream over the next 3 years? What is the firm’s current stock price?

What is the incremental net present value of replacing : Assuming a discount rate of 8%, what is the incremental net present value of replacing the current machine?

User Account

All Pages