Surf City Has Decided on a 1-For-5 Reverse Stock Split

question 324

Multiple Choice

Surf City has decided on a 1-for-5 reverse stock split. If the firm currently has 20,000,000 shares outstanding, how many shares will be outstanding after the stock split?

• A) 10,000,000 shares
• B) 20,000,000 shares
• C) 5,000,000 shares
• D) 4,000,000 shares
• E) 2,000,000 shares

Recognize the role of taxes, bankruptcy costs, and financial distress in shaping capital structure decisions.

Understand the procedures and priorities in bankruptcy proceedings.

Understand the role and impact of effective production and operations management in lowering costs, increasing quality, and fostering innovation.

Differentiate between standardized and custom parts in the context of production.

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Definitions:

Store Fixtures

Equipment and furniture used in retail stores to display merchandise and enhance the shopping experience.

Business Proposition

A unique offer or plan proposed by a business to provide certain products or services under specific conditions.

Marketing Plan

An extensive plan or strategy document that details how a business will execute its marketing and advertising activities over a set timeframe.

End-User

The ultimate consumer of a product or service, who uses it for its intended purpose.