(Solution) - Lots of fiend Curling Supplies Limited LBCS has 1 million -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

Paper Format: APA

Pages: 5 Words: 1375

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Lots of fiend Curling Supplies Limited (LBCS) has 1 million shares outstanding as of November 30, 2010. The share price is $25.00.
Required:
Calculate the new share price on December 1, 2010, if:
(a) LBCS executes a four-for-one stock split.
(b) LBCS declares a stock dividend that will give each shareholder three shares for every one they currently own.
What is your conclusion about the post-event stock price for a four-for-one stock split and a three-share stock dividend per share?