Corporate Finance
Corporate Finance
3rd Edition
ISBN: 9780132992473
Author: Jonathan Berk, Peter DeMarzo
Publisher: Prentice Hall
Question
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Chapter 17, Problem 34P
Summary Introduction

To discuss: The advantageous time to take the reverse stock split.

Introduction:

Reverse stock split is the method that is used to reduce a company’s share value that is outstanding and to increase the price per share. Reverse stock split is the opposite of forward stock splits. This works normally as a regular dividend resulting in a reverse action.

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What is the primary motivation for a forward stock split?
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What is the major reason for a forward stock split?

Chapter 17 Solutions

Corporate Finance

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