If a company declares a 1-for-5 reverse stock split, show that a current shareholder is no better

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If a company declares a 1-for-5 reverse stock split, show that a current shareholder is no better off after the split if the price before the split is $5 and the price after the split is $25.

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Financial Management Core Concepts

ISBN: 978-0133866698

3rd edition

Authors: Raymond M Brooks

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Question Posted: Oct 31, 2017 08:24 AM

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If a company declares a 1-for-5 reverse stock split, show that a current shareholder is no better

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Financial Management Core Concepts

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