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Global Crossing currently has 2,600,000 shares outstanding and a stock price of $20.00. The company is going to declare a two
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Answer #1

Reverse stock split will have no effect on the company's value or company's total market capitalization, as both will be same after the reverse split. However the company will have reduced outstanding shares to the extent of stock split, but the share price increases in direct proportion to the reverse stock split.

Hence share price will be = (20*(7/2))

Stock price after the split is = $ 70/.

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