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Smells Good Health and Beauty Co. has 250,000 shares of stock outstanding with a par value of $1 per share and a market value of
Smells Good Health and Beauty Co. has 250,000 shares of stock outstanding with a par value of $1 per share and a market value of $10 a share. The company has retained earnings of $76,500 and additional paid in capital of $340,000. The company just announced a 1-for-5 reverse stock split. How many shares of stock will be outstanding after the split? What will the stock price be after the split?
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