Edie's Health and Beauty Supply has 125,000 shares outstanding with a par value of £1 per share and a market value of £5 a share.The company has retained earnings of £76,500 and additional
Paid in capital of £340,000.The company just announced a 1-for-5 reverse stock split.What will the
Market value per share be after the split?
A) £1.00
B) £2.50
C) £5.00
D) £12.50
E) £25.00
Correct Answer:
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