FUND.OF CORPORATE FINANCE(LL)
FUND.OF CORPORATE FINANCE(LL)
11th Edition
ISBN: 9781260443714
Author: Ross
Publisher: MCG
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Chapter 17, Problem 17.8CTF
Summary Introduction

To determine: The number of shares Mr. T gets by using reverse stock split.

Introduction:

Reverse stock split: Reverse stock split is the method, which reduces the company’s share value, which is outstanding; and increases the price per share. Reverse stock split is the opposite of forward stock splits. This works normally as regular dividend, but reverse action will be taken.

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Heidi owns 680 shares of Boyd Enterprises, which is priced at $65.44 per share. The company plans a 6-for-5 stock split. How many shares will Heidi own and what will the share price be after the stock split?
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Chapter 17 Solutions

FUND.OF CORPORATE FINANCE(LL)

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