At the beginning of current year, Alto Company declared 1 for 5 reverse share split, when the market value of share was P100. Prior to the split, the entity had 10,000 shares of 10 par value issued and outstanding. What is the par value of share after the share split?

At the beginning of current year, Alto Company declared 1 for 5 reverse share split, when the market value of share was P100. Prior to the split, the entity had 10,000 shares of 10 par value issued and outstanding. What is the par value of share after the share split?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

22. At the beginning of current year, Alto Company declared 1 for 5 reverse share split, when the market value of share
was P100. Prior to the split, the entity had 10,000 shares of 10 par value issued and outstanding. What is the par
value of share after the share split?

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