Edie's Health and Beauty Supply has 125,000 shares of stock outstanding with a par value of...
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Edie's Health and Beauty Supply has 125,000 shares of stock outstanding with a par value of $1 per share and a market value of $5 a share. The company has retained earnings of $76,500 and capital in excess of par value of $340,000. The company just announced a 1-for-5 reverse stock split. (i) How many shares of stock will be outstanding after the split? (i) What will the par value per share be after the split? (iii) What will the market value per share be after the split? (6 marks) Edie's Health and Beauty Supply has 125,000 shares of stock outstanding with a par value of $1 per share and a market value of $5 a share. The company has retained earnings of $76,500 and capital in excess of par value of $340,000. The company just announced a 1-for-5 reverse stock split. (i) How many shares of stock will be outstanding after the split? (i) What will the par value per share be after the split? (iii) What will the market value per share be after the split? (6 marks)
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