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John's Has Common Stock Outstanding at a Price of $27

Question 63

Multiple Choice

John's has common stock outstanding at a price of $27 a share.The total market value of the equity is $435,000.How many shares of stock will be outstanding if the firm does a 2-for-5 reverse stock split?


A) 40,278 shares
B) 36,000 shares
C) 6,444 shares
D) 7,500 shares
E) 16,500 shares

Correct Answer:

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