John's Has Common Stock Outstanding at a Price of $27

question 60

Multiple Choice

John's has common stock outstanding at a price of $27 a share.The total market value of the equity is $435,000.How many shares of stock will be outstanding if the firm does a 2-for-5 reverse stock split?

• A)40,278 shares
• B)36,000 shares
• C)6,444 shares
• D)7,500 shares
• E)16,500 shares

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SA Node

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