Question
Emily owns 800 shares of a stock that is currently priced at $16.00 per share. The board just announced that it plans to do a
Emily owns 800 shares of a stock that is currently priced at $16.00 per share. The board just announced that it plans to do a 4-1 reverse stock split. What is the total value of Emily's investment BEFORE the reverse split? How many shares will Emily have after the reverse? What will each share be worth after the reverse? What will be the total value of Emily's investment after the reverse?
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Applied Quantitative Finance
Authors: Härdle
3rd Edition
3662544857, 978-3662544853
