How many shares will he own after the reverse stock split

Assignment Help Financial Management

Reference no: EM132059851

Question

Worst Buy Company has had a lot of complaints from customers of late, and its stock price is now only $3 per share.

It is going to employ a one-for-six reverse stock split to increase the stock value. Assume Dean Smith owns 144 shares.

a. How many shares will he own after the reverse stock split? (Do not round intermediate calculations and round your answer to the nearest whole number.) Number of shares

b. What is the anticipated price of the stock after the reverse stock split? (Do not round intermediate calculations and round your answer to 2 decimal places.) Anticipated stock price

c. Because investors often have a negative reaction to a revere stock split, assume the stock only goes up to 70 percent of the value computed in part b. What will the stock's price be? (Do not round intermediate calculations and round your answer to 2 decimal places.) Stock price

Reference no: EM132059851

Questions Cloud

What cost structure is best when a provider is capitates : What would happen to a healthcare organization over time if its prices were set at either full costs or marginal costs?

Perpendicular to the tangent line : At what point does the normal line to y=-4-4x+x^2 at (1,-7) intersect the parabola a second time?

What is L partners return on equity : Their ending capital balances were $85,000 and $105,000 respectively. L's share of net income was $6,000. What is L partners return on equity

How fast is the base of the ladder sliding away : How fast is the base of the ladder sliding away from the wall at the instant when the top of the ladder is 24 feet from the ground?

How many shares will he own after the reverse stock split : It is going to employ a one-for-six reverse stock split to increase the stock value. Assume Dean Smith owns 144 shares.

How fast is its area growing at the instant : The radius of a circular puddle is growing at a rate of 25 cm/sec. How fast is its area growing at the instant when the radius is 50 centimeters?

What is the amount of gross profit realized : Relative Sales Value Method During 2011, Crawford Furniture Company purchases a carload of wicker chairs. What amount of gross profit realized during 2011

How fast is the radius growing at the instant : The area of a circular sunspot is growing at a rate of 800 km2/sec

Construct a tank with a volume : The radius and height of a tank cannot exceed above 5m and 12m respectively. It is possible to construct a tank with a volume of 900m^2?

User Account

All Pages