The Wall Street Journal— Digital Network
Tuesday, May 10, 2011
by Matt Phillips and Randall Smith
“Citigroup Inc. became a $ 40 stock for the first time since late 2007, as its share price appeared to rise more than 830% from Friday’s close.. Through a reverse split, Citigroup was able to ax a huge number of shares outstanding by turning every 10 shares into a single share.” Wall Street Journal, Digital Network, Tuesday, May 10, 2011 by Matt Phillips and Randall Smith

Required
a. What would happen to the stock price on the date that the reverse split was effective?
b. Citigroup’s net income (loss) for 2010, 2009 and 2008 would be reported at what amount after the reverse split?
c. Restate the earnings per share for 2010, 2009 and 2008 after the reverse split.