A firm has 2 million shares outstanding, selling for $3 a share. If the firm does a 1 -for-4 reverse split, how many shares will be outstanding and what will the market price per share be?

Question 47 options:

0.5 million shares at $12 a share

8 million shares at $12 a share

8 million shares at $0.75 a share

0.5 million shares at $0.75 a share