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In a Reverse Stock Split The

Question 46

Multiple Choice

In a reverse stock split the:


A) number of shares outstanding increases and the owners' equity decreases.
B) firm buys back existing shares of stock on the open market.
C) firm sells new shares of stock on the open market.
D) number of shares outstanding decreases while the book value of owners' equity is unchanged.
E) shareholders make a cash payment to the firm.

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