What size reverse split is necessary to increase share price


Response to the following problem:

Lowly Worm Corporation's common share price is currently around $5 per share. The board of directors have decided that a more respectable share price level is around $20. The board also realizes that in the company's current circumstance, share price is not expected to increase and cannot be increased other than with a reverse stock split. What size reverse split is necessary to increase the share price to the desirable level?

Show all work and calculations.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: What size reverse split is necessary to increase share price
Reference No:- TGS02107743

Expected delivery within 24 Hours