The Olive Vase has 56,000 shares of stock outstanding with a par value of $1 per share and a market value of $11 a share. The company just announced a 3-for-4 reverse stock split. Currently, you own 500 shares of this stock. What will the total value of your shares be after the reverse stock split?
The total value of your shares will not change.
Total value = 500(3/4) × $11(4/3) = $5,500 |
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The Green Florist has 28,000 shares of stock outstanding with a par value of $1 per share and a market value of $7 a share. The company just announced a 2-for-5 reverse stock split. Currently, you own 300 shares of this stock. How many shares will you own after the reverse stock split?
Number of shares = 300 × 2/5 = 120 shares
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City Center Pharmacy has 11,500 shares of stock outstanding with a par value of $1 per share and a market value of $12 a share. The company just announced a 3-for-7 reverse stock split. What will the market value per share be after the reverse stock split?
Market value per share = $12 × 7/3 = $28.00
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