Answer:
a. BTC has a five-for-three stock split.
new number of shares outstanding = (520,000 / 3) x 5 = 866,666.67 ≈ 866,667
new market price per stock = ($85 / 5) x 3 = $51
b. BTC has a 12 percent stock dividend.
new number of shares outstanding = 520,000 x 1.12 = 585,400
new market price per stock = $85 / 1.12 = $75.89
c. BTC has a 43.5 percent stock dividend.
new number of shares outstanding = 520,000 x 1.435 = 746,200
new market price per stock = $85 / 1.435 = $59.23
d. BTC has a four-for-seven reverse stock split.
new number of shares outstanding = (520,000 / 7) x 4 = 297,142.86 ≈ 297,413
new market price per stock = ($85 / 4) x 7 = $148.75
