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Worst Buy Company has had a lot of complaints from customers of late, and its stock price is now only $ 2 per share. It
Worst Buy Company has had a lot of complaints from customers of late, and its stock price is now only $ per share. It is going to
employ a oneforsix reverse stock split to increase the stock value. Assume Dean Smith owns shares.
a How many shares will he own after the reverse stock split?
Note: Do not round intermediate calculations and round your answer to the nearest whole number.
Number of shares
b What is the anticipated price of the stock after the reverse stock split?
Note: Do not round intermediate calculations and round your answer to decimal places.
Anticipated stock price
c Because investors often have a negative reaction to a reverse stock split, assume the stock only goes up to percent of the value
computed in part What will the stock's price be
Note: Do not round intermediate calculations and round your answer to decimal places.
d how has the total value of Dean Smith's holdings changed from before the reverse stock split to after the reverse stock split based on the stock value computed in part c to get the total value before and after the split, multiply the shares held times the stock price
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