recent years Constable Inchas suffered losses, and its stock currently sells for only $0.50 per share Management wants to use a reverse split to 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 to achieve the $25 price, assuming this transaction has no effect on total market value?

Question

Quizplus · Accepted Answer

To achieve a $25 price per share from $0.50, a reverse split of 50 old shares for 1 new share is needed (25 / 0.50 = 50).

Recent Years Constable Inchas Suffered Losses, and Its Stock Currently