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Author Question: Stark Industries currently trades for $50 per share and has 175M shares outstanding. It announces ... (Read 40 times)

CharlieWard

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Question 1

Shares of Brockshire Holding Company Inc. trade for $90,000 per share. There are 1.75 million shares outstanding. If Brockshire wanted to execute a stock split so as to reduce the stock price to $80, what split ratio would they use?
◦ 100-for-1
◦ 125-for-1
◦ 550-for-1
◦ 1,125-for-1
◦ 1,550-for-1

Question 2

Stark Industries currently trades for $50 per share and has 175M shares outstanding. It announces that it will execute a reverse-split on a 1-for-3 basis. How many shares will be outstanding after the split?
◦ 52.50 M
◦ 58.33 M
◦ 116.67 M
◦ 175.00 M
◦ 233.33 M


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Marked as best answer by CharlieWard on Apr 25, 2021

jointhecircus

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CharlieWard

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)


strudel15

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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