How does the new LLC determine the total number of issuable shares?

Help with finance work? Share price and shares outstanding. Please and thanks!?

  • Bermuda Triangle Corporation (BTC) currently has 300,000 shares of stock outstanding that sell for $93 per share. Assuming no market imperfections or tax effects exist. Determine the share price and new number of shares outstanding if (a) BTC has a five-for-three stock split. Price per share Shares outstanding (b) BTC has a 15 percent stock dividend. Price per Share Shares outstanding (c) BTC has a 39.5 percent stock dividend. Price per Share Shares outstanding (d) BTC has a four-for-seven reverse stock split. Price per Share Shares outstanding

  • Answer:

    (a) BTC has a five-for-three stock split. Price per share:55.8 Shares outstanding: 500'000 (b) BTC has a 15 percent stock dividend. Price per Share: 80.87 Shares outstanding: 345'000 The trick is after any of these operation you should always have the same total market value. You do the rest ! If you can't get, here an article: http://www.investopedia.com/articles/01/072501.asp#axzz1fCv84iKc

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