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Theodore's Has Common Stock Outstanding at a Price of $26

Question 64

Multiple Choice

Theodore's has common stock outstanding at a price of $26 a share. The total market value of the equity is $429,000. How many shares of stock will be outstanding if the firm does a 2-for-5 reverse stock split?


A) 41,250 shares
B) 36,000 shares
C) 6,600 shares
D) 7,500 shares
E) 16,500 shares

Correct Answer:

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