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Ten years ago, Sunland Ltd. issued 598,500 shares, which are still outstanding, for a total value of $4.55 million. The board of directors for Sunland Ltd. has become concerned with the dramatic drop in the market price of the shares to $0.40 per share. The company is at risk of being delisted if the share price drops below $0.35 per share. (a) Your answer is correct. What would be the required reverse stock split to move the market price to $7.60 per share? Required reverse stock split 1 for 19

Ten years ago, Sunland Ltd. issued 598,500 shares, which are still outstanding, for a total value of $4.55 million. The board of directors for Sunland Ltd. has become concerned with the dramatic drop in the market price of the shares to $0.40 per share. The company is at risk of being delisted if the share price drops below $0.35 per share. (a) Your answer is correct. What would be the required reverse stock split to move the market price to $7.60 per share? Required reverse stock split 1 for 19

FINANCIAL ACCOUNTING
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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Ten years ago, Sunland Ltd. issued 598,500 shares, which are still outstanding, for a total value of $4.55 million. The board of directors for Sunland Ltd. has become concerned with the dramatic drop in the market price of the shares to $0.40 per share. The company is at risk of being delisted if the share price drops below $0.35 per share. (a) Your answer is correct. What would be the required reverse stock split to move the market price to $7.60 per share? Required reverse stock split 1 for 19
Transcribed Image Text:Ten years ago, Sunland Ltd. issued 598,500 shares, which are still outstanding, for a total value of $4.55 million. The board of directors for Sunland Ltd. has become concerned with the dramatic drop in the market price of the shares to $0.40 per share. The company is at risk of being delisted if the share price drops below $0.35 per share. (a) Your answer is correct. What would be the required reverse stock split to move the market price to $7.60 per share? Required reverse stock split 1 for 19
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