EBK CORPORATE FINANCE
EBK CORPORATE FINANCE
4th Edition
ISBN: 8220103164535
Author: DeMarzo
Publisher: PEARSON
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?
In your opinion, what is the most compelling justification for a forward stock split?
What is the major reason for a forward stock split?

Chapter 17 Solutions

EBK CORPORATE FINANCE

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