What Is the New Share Price for a Corporation with a Current

question 50

Multiple Choice

What is the new share price for a corporation with a current share price of $4 that employs a 1-for-10 reverse split?

• A) $0.40
• B) $4.00
• C) $36.36
• D) $40.00

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Definitions:

Income

The monetary payment received for work or through investments, including wages, salaries, or dividends.

Shirt

A shirt is a piece of clothing for the upper body, usually with sleeves and a collar.

Normal Good

A good for which demand increases as the consumer's income rises and decreases as the consumer's income falls.

Giffen Good

A product that people consume more of as the price rises and vice versa, violating the basic law of demand in economics.