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) Determine the number of shares that are outstanding after the consolidation. Number of shares outstanding after consolidation

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) Determine the number of shares that are outstanding after the consolidation. Number of shares outstanding after consolidation

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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