Northeast Tires announces a reverse split. The company will consolidate outstanding shares through a 1- 5 split.

Question:

Northeast Tires announces a reverse split. The company will consolidate outstanding shares through a 1- 5 split. That is, every 5 shares you currently own will be consolidated into 1 share. The current price of the stock is $2.50 per share. What will the after-share price be? If you own 10,000 shares, how many will you have after the reverse split, and what will be your wealth in stock after the split?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

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