Question: If a company declares a 2-for-5 reverse stock split, the price before the split is $30, and the price after the split is $75, show

If a company declares a 2-for-5 reverse stock split, the price before the split is $30, and the price after the split is $75, show that a current shareholder is no better off after the split.

My thoughts: The current shareholders are no better off after the 2-for- 5reverse split because if they owned one share at $30 per share before the split, they would then own 2/5 of a share worth $75 per share immediately after the split. 2/5 = 0.4 and 0.4 multiplied by 75 = 30

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