On January 15, 2020, the board of directors of Miz Corporation voted to consolidate its outstanding common shares on the basis of one post-consolidation common share for every 20 pre-consolidation common shares (that is, a one-for-twenty reverse stock split). Miz Corporation common shares had a market price on January 15, 2020, of $0.50 per share. The shareholders' equity section of the statement of financial position of Miz Corporation at December 31, 2019, is given below: Shareholders'equity: Common shares, unlimited authorized, 10,850,000 shares issued and outstanding $54,250,000 Retained earnings (deficit) (5,020,000) Total shareholders' equity $49,230,000

On January 15, 2020, the board of directors of Miz Corporation voted to consolidate its outstanding common shares on the basis of one post-consolidation common share for every 20 pre-consolidation common shares (that is, a one-for-twenty reverse stock split). Miz Corporation common shares had a market price on January 15, 2020, of $0.50 per share. The shareholders' equity section of the statement of financial position of Miz Corporation at December 31, 2019, is given below: Shareholders'equity: Common shares, unlimited authorized, 10,850,000 shares issued and outstanding $54,250,000 Retained earnings (deficit) (5,020,000) Total shareholders' equity $49,230,000

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

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On January 15, 2020, the board of directors of Miz Corporation voted to consolidate its outstanding common shares on the basis of
one post-consolidation common share for every 20 pre-consolidation common shares (that is, a one-for-twenty reverse stock split).
Miz Corporation common shares had a market price on January 15, 2020, of $0.50 per share. The shareholders' equity section of
the statement of financial position of Miz Corporation at December 31, 2019, is given below:
Shareholders' equity:
Common shares, unlimited authorized, 10,850,000 shares
issued and outstanding
$54,250,000
Retained earnings (deficit)
(5,020,000)
Total shareholders' equity
$49,230,000
(a)
Your answer is correct.
Determine the number of shares that are outstanding after the consolidation.
542500
Number of shares outstanding after consolidation
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(b)
What would be the expected market price for the shares after the consolidation?
24
Expected market price
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(c)
The parts of this question must be completed in order. This part will be available when yor
(d)
The parts of this question must be completed in order. This part will be available when you
APR
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