ZuoTi.Pro
Question

accounting

Ross-Jordan Financial has suffered losses in recent years, and its stock currently sells for only $0.50 per share. Management wants to use a reverse split to get theprice up to a more "reasonable" level, which it thinks is $25 per share. How many of the old shares must be given up for one new share to achieve the $25 price,assuming this transaction has no effect on total market value?
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Ross-Jordan Financial has suffered losses in recent years, and its stock currently sells for only $0.50 per share. Management wants to use a reverse splitto get the price up to a more "reasonable" level, which it thinks is $25 per share. How many of the old shares must be given up for one new share toachieve the $25 price, assuming this transaction has no effect on total market value?

answer; $ 50

answered by: biti
0 0
Add a comment
Answer #2
$50
0 0
Add a comment
Know the answer?
Add Answer to:
accounting
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • ooooo If one U.S. dollar buys 1.59 Canadian dollars, how many U.S. dollars can you purchase...

    ooooo If one U.S. dollar buys 1.59 Canadian dollars, how many U.S. dollars can you purchase for one Canadian dollar? O a. 0.7547 O b. 0.5346 O c.0.6289 O d. 0.6667 O e. 0.5786 estions Question 17 of 40 looooo Ross-Jordan Financial has suffered losses in recent years, and its stock currently sells for only $0.60 per share. Management wants to use a reverse split to get the price up to a more "reasonable" level, which it thinks is $12...

  • Keys Financial has done extremely well in recent years, and its stock now sells for $65...

    Keys Financial has done extremely well in recent years, and its stock now sells for $65 per share. Management wants to get the price down to a more typical level, which it thinks is $40.00 per share. What stock split would be required to get to this price, assuming the transaction has no effect on the total market value? Put another way, how many new shares should be given per one old share? Please show the work!

  • Keys Financial has done extremely well in recent years, and its stock now sells for $195...

    Keys Financial has done extremely well in recent years, and its stock now sells for $195 per share. Management wants to get the price down to a more typical level, which it thinks is $35 per share. What stock split would be required to get to this price, assuming the transaction has no effect on the total market value? Put another way, how many new shares should be given per one old share? Show your calculations, if any, and explain...

  • o O o Brinkley Resources stock has increased significantly over the last five years, selling now...

    o O o Brinkley Resources stock has increased significantly over the last five years, selling now for $175 per share. Management feels this price is too high for the average investor and wants to get the price down to a more typical level, which it thinks is $25 per share. What stock split would be required to get to this price, assuming the transaction has no effect on the total market value? Put another way, how many new shares should...

  • Brinkley Resources stock has increased significantly over the last five years, selling now for $60 per...

    Brinkley Resources stock has increased significantly over the last five years, selling now for $60 per share. Management feels this price is too high for the average investor and wants to get the price down to a more typical level, which it thinks is $25 per share. What stock split would be required to get to this price, assuming the transaction has no effect on the total market value? Put another way, how many new shares should be given per...

  • Lucky Buy Company’s stock has suffered due to several warranty-related lawsuits filed against the...

    Lucky Buy Company’s stock has suffered due to several warranty-related lawsuits filed against the company. The company revamped their warranty program and introduced additional customer services to improve the customer experience. Yet, its stock price is only $13 per share. Management is planning a two-for-seven reverse stock split to increase the stock price and bring it closer to the average stock price in the industry. Assume that John Thornton, the last remaining co-founder of the firm, owns 420,000 shares. (7...

  • JPix management is considering a stock split. JPix currently sells for $102 per share and a...

    JPix management is considering a stock split. JPix currently sells for $102 per share and a 3-for-1 stock split is contemplated. What will be the company's stock price following the stock split, assuming that the split has no effect on the total market value of JPix's equity? Round your answer to the nearest dollar.

  • Stock Split JPix management is considering a stock split. JPix currently sells for $96 per share...

    Stock Split JPix management is considering a stock split. JPix currently sells for $96 per share and a 3-for-2 stock split is contemplated. What will be the company's stock price following the stock split, assuming that the split has no effect on the total market value of JPix's equity? Round your answer to the nearest dollar. $

  • The Hally Florist has 28,000 shares of stock outstanding with a par value of Rsti per...

    The Hally Florist has 28,000 shares of stock outstanding with a par value of Rsti per share and a market value of RM7 a share. The company just announced a .for-5 reverse stock split. Currently, you own 300 shares of this stock. How many shares will you own after the reverse stock split? (2 marks) (CLO PLO2C3)

  • Sammy’s Sportshops has been very profitable in recent years and has seen its stock price steadily...

    Sammy’s Sportshops has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1 stock split. Required: 1. Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders’ equity accounts, shares outstanding, par value, and share price. (Round "Par value per share" to 2 decimal places. Required...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT