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Stock Splits: Miyeon Corp. has 1,500,000 shares outstanding. The stock is trading at a price of $210.00 per share. The company wants to lower the
- Stock Splits:
- Miyeon Corp. has 1,500,000 shares outstanding. The stock is trading at a price of $210.00 per share. The company wants to lower the stock price and declares a 3-for-2 stock split (for every 2 shares, investors would now have 3 shares). Calculate the new number of shares outstanding.
- [From a. above] Calculate the new expected stock price.
- Yuki Corp. has 30,000,000 shares outstanding. The stock is trading at a price of $1.50 per share. The company needs to trade at a higher stock price to remain on the NASDAQ and declares a 1-for-15 reverse stock split (for every 15 shares, investors would now have 1 share). Calculate the new number of shares outstanding.
- [From c. above] Calculate the new expected stock price.
- [From c. above] Calculate the market valuation of Yuki Corp.
- Calculate the expected market valuation of Yuki Corp. post reverse stock split.
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