Determining the effect on total market value


Ross Financial has suffered losses in recent years, and its stock currently sells for only $0.50 per share. Management wants to use a reverse split to get the price up to a more "reasonable" level, which it thinks is $25 per share. How many of the old shares must be given up for one new share to achieve the $25 price, assuming this transaction has no effect on total market value?

47.50

49.88

50.00

52.50

55.13

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Determining the effect on total market value
Reference No:- TGS051855

Expected delivery within 24 Hours