Question: Question 4 In recent years Constable Inc. has suffered losses, and its stock currently sells for only $0.50 per share. Management wants to use a

 Question 4 In recent years Constable Inc. has suffered losses, and

Question 4 In recent years Constable Inc. has suffered losses, and its stock currently sells for only $0.50 per share. Management wants to use a reverse split to get the price up to a more reasonable" level, which it thinks is $25 per share. How many of the old shares must be given up for one new share to achieve the $20 price, assuming this transaction has no effect on total market value

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!