Answer and Explanation:
The computation of each points is shown below:-
a. BTC has a five-for-three stock split is
New price = Old price × Split ratio
= 102 × 3 ÷ 5
= 61.2
New shares outstanding = old shares outstanding ÷ Split ratio
= 390,000 × 5 ÷ 3
= 650,000
b. BTC has a 10 percent stock dividend is
New price = Old price ÷ (1 + Stock dividend)
= 102 ÷ (1 + 0.1)
= 92.73
New shares outstanding = Old shares outstanding × (1 + Stock dividend)
= 390,000 × (1 + 0.1)
= 429,000
c. BTC has a 37.0 percent stock dividend is
New price = Old price ÷ (1 + Stock dividend)
= 102 ÷ (1 + 0.37)
= 74.45
New shares outstanding = Old shares outstanding × (1 + Stock dividend)
= 390,000 × (1 + 0.37)
= 534,300
d. BTC has a four-for-seven reverse stock split is
New price = Old price × Split ratio
= 102 × (7 ÷ 4)
= 178.5
New shares outstanding = Old shares outstanding ÷ Split ratio
= 390,000 × (4 ÷ 7)
= 222,857.14
