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need help with practice question

An investor owns 500 shares of ABC corp. currently trading at $10 per share. Each share pays $1 per year in dividends. Which
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Answer #1

If reverse stock split is done then number of share will be reduced.

So number of share will be =500/5 i.e.100 shares.

Market price will also increase in same way, price will be =10*5 i.e. 50 per share

dividend per share will be decrease ue to this.

Option A is correct i.e. cost of investor share will remain same.

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