a.
To calculate: The shares owned by Dean Smith after reverse stock split.
Introduction:
Reverse Stock Split:
A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.
b.
To calculate: The anticipated stock price post reverse stock split.
Introduction:
Reverse Stock Split:
A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.
c.
To calculate: The actual price of the stock on the basis of the assumption that stock would go up, but only up to 80% of the value computed in part (b).
Introduction:
Reverse Stock Split:
A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.
d.
To calculate: The change in the value of the holdings of Dean Smith from before the reverse stock split to after it.
Introduction:
Reverse Stock Split:
A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.
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Foundations Of Financial Management
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