Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. worst buy company has had a lot of complaints from

Worst Buy Company has had a lot of complaints from customers of late and its...

50.1K

Verified Solution

Question

Finance

Worst Buy Company has had a lot of complaints from customers of late and its stock price is now only $4 per share. It plans to employ a one-for-five reverse stock split to increase the share value. Assume Dean Smith owns 108 shares.

a. How many shares will he own after the reverse stock split?

Number of shares shares

b. What is the anticipated share price after the reverse stock split? Anticipated stock price $

c. Because investors often have a negative reaction to reverse stock splits, assume the shares only go up to 90 percent of the value computed in part b. What will the share price be?

Share price $

d. How has the value of Dean Smiths holdings changed from before the reverse stock split to after the reverse stock split (based on the share value computed in part c)? (Input the answer as positive value.)

Dean Smiths holdings have (Click to select) increased by decreased by $

Answer & Explanation Solved by verified expert
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

Other questions asked by students

Q

1. how is gram stain done? 2. What types of bacteria are stained differently in the...

Biology
Q

Which of the following are properties of life Highly ordered structure Made of cells Reproduces...

Biology
Q

Fill in the blank The negation of p p will always have the The negation...

Basic Math
Q

Solve the compound inequality.- 2x < -8 and x-4 <5Select the correct choice below and,...

Basic Math
Q

Let A = {H, T}, B = {1, 2, 3, 4, 5, 6}, and C...

Basic Math
Q

Physicians and pharmacists sometimes fail to inform patients adequately about the proper application of prescription...

Statistics
Q

4 Rationalize the denominator Tip multiply by a form of 1 Case 1 denominator is...

Calculus
Q

Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet Note: Enter debits before...

Accounting
Q

Jettison Corporation, an S corporation, may have its S corporation election terminated by all of...

Accounting
Q

Wallace and Simpson formed a partnership with Wallace contributing $86,000 and Simpson contributing $66,000. Their...

Accounting
Q

please imcan you answer need help Selected Financial Information December...

Accounting
Q

Cash Budget The owner of a building supply company has requested a cash budget for...

Accounting