Question
(a)ABC Company currently has 30,000 shares of stock outstanding that sell for $14 per share. Assume no market imperfections or tax effects exist. What will
(a)ABC Company currently has 30,000 shares of stock outstanding that sell for $14 per share.
Assume no market imperfections or tax effects exist.
What will the new number of shares outstanding (N) be after each of the following scenario? What will the share price (P) be after each of the following scenario?
(1) ABC has a seven-for-two stock split.
(2) ABC has a one-for-three reverse stock split.
(b)What is the argument that proponents of stock splits frequently use to justify for the use of stock splits?
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International Financial Reporting Standards An Introduction
Authors: Belverd Needles, Marian Powers
2nd edition
053847680X, 978-1111793234, 1111793239, 978-0538476805
