A firms shares currently sell for $3.50 with 4 million shares outstanding. The firm plans to reverse

Question:

A firm’s shares currently sell for $3.50 with 4 million shares outstanding. The firm plans to reverse split its stock by combining two shares into one share. If the price after this reverse split is $6.52, have shareholders gained or lost value? How much value is gained or lost? ( Consider shareholder value to be the market capitalization, which equals the number of shares outstanding multiplied by the stock price.)
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: