Stock Splits and Stock Dividends [L03] Simmons Mineral Operations, Inc.

Stock Splits and Stock Dividends [L03] Simmons Mineral Operations, Inc., (SMO) currently has 490,000 shares of stock outstanding that sell for $73 per share, Assuming no market imperfections or tax effects exist, what will the share price be after: (a). SMO has a five-for-three stock split? (b). SMO has a 15 percent stock dividend? (c). SMO has a 42.5 percent stock dividend? (d). SMO has a four-for-seven reverse stock split?

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

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