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.
need help with practice question An investor owns 500 shares of ABC corp. currently trading at...
An investor owns 1000 shares of stock in ABC Corp. with a market value of $1,100. ABC declares a 10% stock dividend. After the dividend is paid, John owns____________ 1000 shares with a market value of $1,000. 1000 shares with a market value of $1,100. 1100 shares with a market value of $1,100. 1100 shares with a market value of $1,000.
need help Jesse owns 2,000 shares of OOP Inc. currently trading at $1.25. OOP implements a 1:8 reverse stock split (consolidation). Which statement is correct about the impact of this reverse stock split? a) The value of Jesse's investment will not change because of the consolidation. b) The value of Jesse's investment will increase because of the consolidation c) The value of Jesse's investment will decrease because of the consolidation. O d) Jesse's investment is not affected as the consolidation...
Question1 Coombs Corp. declared a two-for-one stock split. Solly Fogarty owned 500 shares of Coombs that were trading for $20 each before the split. Which of the following is ikely to be true after the spl? The market price per share will drop by 50%. O The total market value of Solly's shares will double. The number of shares Soby owns wil increase by SO. The market price per share nli increase by 100%.
An investor owns 1,000 shares of BXO shares and 500 shares of MBA stock. BXO shares are currently selling for $23 each and have a beta of 1.4. MBA shares are currently selling for $55 each and have a beta of 1.2. What is the beta of the portfolio of shares owned by this investor? ____ A) 1.20 B) 1.23 C) 1.29 D) 1.33
An investor owns 300 shares of stock currently selling for $70 per share. After a 3-for-2 stock split, the investor will have: Multiple Choice 200 shares selling for $93.10 each. 200 shares selling for $105.00 each. 450 shares selling for $46.67 each. 450 shares selling for $93.10 each.
Mary Moneyhill owns 2,000 shares of ABC common stock at a current market price of $80 per share. If ABC splits its stock 4-for-1, what would Mary’s position be after the split? 8,000 shares at $80 per share 500 shares at $320 per share 8,000 shares at $20 per share 500 shares at $80 per share
ABC Corp. has 500,000 shares of P10 par ordinary share capital outstanding as of October 1, 2010. On this date, the Board of directors declared a share capital dividend distributable on November 20, 2010 to shareholders of record of October 30. The Market price of each ordinary share is P25 on October 1; P23 on October 30 and P30 on November 20. Instructions: Prepare the entries to record the declaration and distribution of stock dividends under each of the following...
Timothy owns 780 shares of Countess Corp., which is priced at $14.01 per share. The company plans a 3-for-4 reverse stock split. How many shares will Timothy own and what will the share price be after the reverse stock split?
Timothy owns 980 shares of Countess Corp., which is priced at $14.41 per share. The company plans a 1-for-4 reverse stock split. How many shares will Timothy own and what will the share price be after the reverse stock split?
Investor owns 1,000,000 shares of stock of Corp. XYZ with a zero basis and a FMV of 100,000,000 that the investor has held for 20 years. The investor sells 1,000,000 shares of XYZ short for $100,000,000 in February 2018. On January 21, 2019, the investor purchases 1,000,000 shares with a normal settlement for 120,000,000 and instructs the broker to deliver those shares to close the short sale. XYZ paid 4 dividends during 2018. The ex-dividend dates were March 1, June...