Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. suppose that i paid $2,000 for 100 shares of enlig

Suppose that I paid $2,000 for 100 shares of Enlighten Software Solutions on April 4, 1999....

50.1K

Verified Solution

Question

Finance

Suppose that I paid $2,000 for 100 shares of Enlighten SoftwareSolutions on April 4, 1999. Today, the company is worth only 15cents per share. Suppose that in order to be listed on a particularexchange, it must be priced at $1.50 (or above).

a. What sort of corporate reorganization can the firm conduct toachieve the minimum listing price, holding all else constant?

b. If the firm takes your advice in part (a), how many shareswould I own?

Answer & Explanation Solved by verified expert
3.6 Ratings (570 Votes)
a Current value per share 15 cents 015 Minimum value per share needed for listing Desired price 150 Consolidation or merging of shares by the help of reverse stock split can increase the value per share Reverse stock    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Suppose that I paid $2,000 for 100 shares of Enlighten SoftwareSolutions on April 4, 1999. Today, the company is worth only 15cents per share. Suppose that in order to be listed on a particularexchange, it must be priced at $1.50 (or above).a. What sort of corporate reorganization can the firm conduct toachieve the minimum listing price, holding all else constant?b. If the firm takes your advice in part (a), how many shareswould I own?

Other questions asked by students

Q

1, Apply the 7 Daily Habits to Happiness: Describe how you might apply these scientific-based habits...

Psychology
Q

How is the cosmic microwave background a logical conclusion from the idea of the Big Bang?

Physics
Q

E-commerce takes on many forms. Amazon has changed product distribution and consumer access significantly.   Most recently, Amazon...

General Management
Q

Agree or Disagree and Why? To assess whether or not a decision maker is a risk...

General Management
Q

For products such as home appliances, toys, garments, and consumer electronics, what factors would influence selecting...

General Management
Q

The city s basic law is called it s compact O pact O charge O...

Biology
Q

The probability of a sunny day is 3/7 and the probability of a rainy day...

Basic Math
Q

The total accumulated costs C t and revenues R t in thousands of dollars respectively...

Calculus
Q

8.6.5 Que Suppose that you are thinking about buying a car and have narrowed down...

Accounting
Q

Budgeted sales of the South Side Sundae Shop for the first quarter of the year...

Accounting
Q

Need answers to the five following ratios: Day Sales in Inventory Average Collection Period Dividend...

Accounting
Q

1)A 20 year old callable bond can be called back at year 15. At the...

Finance