The Health Store Has 135,000 Shares of Stock Outstanding with a Par

The Health Store has 135,000 shares of stock outstanding with a par value of $1 per share and a market value of $5 a share.The company has retained earnings of $76,500 and capital in excess of par value of $340,000.The company just announced a 1-for-5 reverse stock split.How many shares of stock will be outstanding after the split?

A) 27,000 shares
B) 67,500 shares
C) 312,500 shares
D) 675,000 shares
E) 625,000 shares