Question
Worst Buy Company has had a lot of complaints from customers of late, and its stock price is now only $3 per share.
It is going to employ a one-for-six reverse stock split to increase the stock value. Assume Dean Smith owns 144 shares.
a. How many shares will he own after the reverse stock split? (Do not round intermediate calculations and round your answer to the nearest whole number.) Number of shares
b. What is the anticipated price of the stock after the reverse stock split? (Do not round intermediate calculations and round your answer to 2 decimal places.) Anticipated stock price
c. Because investors often have a negative reaction to a revere stock split, assume the stock only goes up to 70 percent of the value computed in part b. What will the stock's price be? (Do not round intermediate calculations and round your answer to 2 decimal places.) Stock price