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A firm has a stock price of $1.20 per share and 900,000 shares outstanding. It...

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Accounting

A firm has a stock price of $1.20 per share and 900,000 shares outstanding. It decides to do a 1-for-9 reverse stock split. After the reverse split, the market price goes to $11 per share. How much have the stockholders gained or lost from the reverse split?

A. Gained $1,100,000

B. Gained $100,000

C. Zero

D. Gained $20,000

E. None of the above

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