Mill Creek Corporation (MCC) currently has 430,000 shares of stock outstanding that sell for $50 per...

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Finance

Mill Creek Corporation (MCC) currently has 430,000 shares ofstock outstanding that sell for $50 per share. Assuming no marketimperfections or tax effects exist, what will the share price beafter:

a.
MCC has a 4-for-3 stock split?

  New share price $  per share

b.
MCC has a 10 percent stock dividend? (Round your answerto 2 decimal places. (e.g., 32.16))

  New share price $  per share

c.
MCC has a 43.5 percent stock dividend? (Round youranswer to 2 decimal places. (e.g., 32.16))

  New share price $  per share

d.
MCC has a 3-for-7 reverse stock split?

  New share price $  per share

Determine the new number of shares outstanding in parts (a)through (d). (Round your answers to the nearest wholenumber. (e.g., 32))

  a. New shares outstanding
  b. New shares outstanding
  c. New shares outstanding
  d. New shares outstanding

Answer & Explanation Solved by verified expert

4.3 Ratings (745 Votes)

a	New share price	$ 37.50	=50*3/4
b	New share price	$ 45.45	=50/(1+10%)
c	New share price	$ 34.84	=50/(1+43.5%)
d	New share price	$ 116.67	=50*7/3
a	New shares outstanding	573,333	=430000*4/3
b	New shares outstanding	473,000	=430000*(1+10%)
c	New shares outstanding	617,050	=430000*(1+43.5%)
d	New shares outstanding	184,286	=430000*3/7

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Transcribed Image Text

Mill Creek Corporation (MCC) currently has 430,000 shares ofstock outstanding that sell for $50 per share. Assuming no marketimperfections or tax effects exist, what will the share price beafter: a.MCC has a 4-for-3 stock split? New share price$ per share b.MCC has a 10 percent stock dividend? (Round your answerto 2 decimal places. (e.g., 32.16)) New share price$ per share c.MCC has a 43.5 percent stock dividend? (Round youranswer to 2 decimal places. (e.g., 32.16)) New share price$ per share d.MCC has a 3-for-7 reverse stock split? New share price$ per share Determine the new number of shares outstanding in parts (a)through (d). (Round your answers to the nearest wholenumber. (e.g., 32)) a. New shares outstanding b. New shares outstanding c. New shares outstanding d. New shares outstanding


a. New shares outstanding
b. New shares outstanding
c. New shares outstanding
d. New shares outstanding