Mike owns 2,400 shares of JXV. The company instituted a 1-for-8 reverse stock split on October 17. The pre-split market price per share was $2.13. a. How many shares did Mike hold after the split? b. What was the post-split price per share? c. Show that the split was a monetary nonevent for Mike.
Chapter 8, Application 8.8 #5
Mike owns 2,400 shares of JXV. The company instituted a 1-for-8 reverse stock split on October 17. The pre-split market price per share was $2.13.
a. How many shares did Mike hold after the split?
b. What was the post-split price per share?
c. Show that the split was a monetary nonevent for Mike.
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Answer
a. First, we would use the below formula to calculate the number of shares before the split: We know …View the full answer
Related Book For 
Financial Algebra Advanced Algebra With Financial Applications
2nd Edition
Authors: Robert Gerver, Richard J. Sgroi
ISBN: 9781337271790