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

question 4

Multiple Choice

What is the new share price for a corporation with a current share price of $4 that employs a 2-for-9 reverse split?

• A) $8
• B) $16
• C) $36
• D) $18

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Definitions:

Real Property

Refers to land and anything permanently attached to the land, like buildings and structures.

Stock Investments

The act of putting money into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit, particularly through the purchase of equity securities in companies.

Tangible

Capable of being touched or felt; having physical substance.

Intangible Personal Property

Non-physical assets owned by an individual or a business, such as intellectual property, stocks, or bonds.