Edie's Health and Beauty Supply Has 125,000 Shares of Stock

Edie's Health and Beauty Supply has 125,000 shares of stock outstanding with a book value of $1.75 per share and a market value of $5 per share. The company has retained earnings of
$76,500. 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