Question
Ross Financial has suffered losses in recent years, and its stock currently sells for only $0.80 per share. Management wants to use a reverse split
Ross Financial has suffered losses in recent years, and its stock currently sells for only $0.80 per share. Management wants to use a reverse split to get the price up to a more "reasonable" level, which it thinks is $40 per share.How many of the old shares must be given up for one new share to achieve the $40 price, assuming this transaction has no effect on total market value?
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Fundamentals of Corporate Finance
Authors: Berk, DeMarzo, Harford
2nd edition
132148234, 978-0132148238
