Surf City Has Decided on a 1-For-5 Reverse Stock Split

Surf City has decided on a 1-for-5 reverse stock split. If the firm currently has 20,000,000 shares outstanding, how many shares will be outstanding after the stock split?

A) 10,000,000 shares
B) 20,000,000 shares
C) 5,000,000 shares
D) 4,000,000 shares
E) 2,000,000 shares