Shares in Raven Products are selling for $50 per share. There are 1 million shares outstanding.

Shares in Raven Products are selling for $50 per share. There are 1 million shares outstanding. What will be the share price in each of the following situations? Ignore taxes. (Do not round intermediate calculations.)

		Share Price
a.	The stock splits five for four.	$
b.	The company pays a 25% stock dividend.
c.	The company repurchases 100,000 shares.

Explanation:

a. The stock price will fall to $50 × 4/5 = $40.

b. The stock price will fall by a factor of 1.25 to $50/1.25 = $40.

c. A share repurchase will have no effect on price per share.