(1) What is the number of shares O/S? (Total Market Value/Price per share) (2) Multiply this by the ratio of the reverse stock split. (3) That will be your answer. A 2-for-5 reverse stock split means, for every 5 shares, you will get 2 shares   

1. B&K Lumber has 50,600 shares of stock outstanding at a price per share of $68. How many shares will be outstanding if the firm does a 5-for-2 stock split?

2. Oak Tree Farms has common stock outstanding at a price of $13 a share. The total market value of the equity is $435,000. How many shares of stock will be outstanding if the firm does a reverse stock split of 2-for-5?

Hint: (1) What is the number of shares O/S? (Total Market Value/Price per share) (2) Multiply this by the ratio of the reverse stock split. (3) That will be your answer. A 2-for-5 reverse stock split means, for every 5 shares, you will get 2 shares

3. Breakers Engineering is preparing to pay its quarterly dividend of $1.36 a share. The stock closed at $51.25 a share today and goes ex-dividend tomorrow. What will the ex-dividend stock price be if the relevant tax rate is 21 percent and all else is held constant?

4 Sarandon Construction just announced it will be paying an annual dividend of $1.48 per share plus an extra dividend of $.56 a share this year. The company also announced that its regular dividend, which is all it anticipates paying after this year, will increase by 2.5 percent annually. What is the anticipated dividend per share next year?

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