Question 1188481: Red Rocks Corporation (RRC) currently has 350,000 shares of stock outstanding that sell for $90 per share. Assuming no market imperfections or tax effects exist, what will the share price and the new number of shares after RRC has a five-for-three stock split?
Answer by ikleyn(52829)   (Show Source):
You can put this solution on YOUR website! .
Red Rocks Corporation (RRC) currently has 350,000 shares of stock outstanding that sell for $90 per share.
Assuming no market imperfections or tax effects exist,
what will the share price and the new number of shares after RRC has a five-for-three stock split?
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The total share is the product 350000*90 = 31500000 dollars, and this amount does not change at splitting.
After splitting, the new share price for each new single share will be  = 54 dollars,
and the number of new shares will be  = 583,333.3.
If you ask me what 0.3 share means, I will answer you that I do not know it.
In general, this site is intended for Math problem and is not intended for pure Finance problems.
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On splitting shares see and learn from this web-site https://www.investopedia.com/terms/s/stocksplit.asp
If you want to get more professional answer, I advise you to find another site/forum to ask your question there.
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