Global Inc.'s shares are selling for $36 per share.Determine the new price per share, if the company a 4 for 6 reverse stock split.

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Quizplus · Accepted Answer

In a 4 for 6 reverse stock split, shareholders receive 4 new shares for every 6 shares they hold. This effectively increases the price per share since the number of shares decreases while the market capitalization remains the same. The new price can be calculated as $36 * (6/4) = $54.