Question

You own 2600 shares of a company which are currently trading at $14 per share. What...

You own 2600 shares of a company which are currently trading at $14 per share. What would be the market price and how many shares would you own if the company announced a reverse spilt of 3 for 5? please show me the math thanks

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Current market price = 14
Number of share hold = 2600
Reverse split is 3 for 5 . Means 3 share for every 5 share hold
Revised number of share =
2600*3/5 1560
New price = $                 23.33
14*5/3 36400
hares would you own= 1560
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You own 300 shares of stock in Halestorm, Inc., that currently sells for $84.25 per share....
You own 300 shares of stock in Halestorm, Inc., that currently sells for $84.25 per share. The company has announced a dividend of $3.65 per share with an ex-dividend date of February 4. Assuming no taxes, what is the value of the stock on February 4?
Acme Inc. currently has 500,000 common shares outstanding that are currently trading at $35 per share....
Acme Inc. currently has 500,000 common shares outstanding that are currently trading at $35 per share. When the shares were originally issued one year ago, their price was $20. The Beta of the company is 1.1 and the market risk premium is 4.5%. The company also has 250,000 shares of preferred stock outstanding for which it pays an annual dividend of $2.50 per share. These preferred shares currently trade at $60 per share. Acme has also just issued 1,500 bonds...
Mayo Corporation is currently trading at​ $30 per share. There are 10 million shares outstanding and...
Mayo Corporation is currently trading at​ $30 per share. There are 10 million shares outstanding and the company has no debt. You believe that the value of the company would increase by​ 50% if the management were replaced. How much would you need to offer in total to acquire​ 50% of​ Mayo's shares?
Suppose you own shares in a company. The current price per share is $25. Another company...
Suppose you own shares in a company. The current price per share is $25. Another company has just announced that it wants to buy your company and will pay $35 per share to acquire all the outstanding shares. Your company’s management immediately begin fighting off this hostile bid. Is management acting in the shareholders’ best interest? Why or why not？
Suppose you sell short Apple.Inc which is currently trading at $100 per share. You put $20,000...
Suppose you sell short Apple.Inc which is currently trading at $100 per share. You put $20,000 as cash into your brokerage account with an initial margin of 50%. The maintenance margin is 25%. a. How many shares of Apple can you sell short? (8 pts) b. How far can the stock price increase before you get a margin call? (12 pts)
Currently the stock of XYZ Ltd. is selling for $50 per share, which was trading at...
Currently the stock of XYZ Ltd. is selling for $50 per share, which was trading at $55 one week earlier and you are certain that the price will fall further. To take the advantage of this downward price momentum you sell short 1000 share of XYZ Ltd at the current market price. You want to make $6000 profit from this short selling. You place an order with your broker to purchase the shares at a certain price to cover the...
Nightingale Plc.’s shares are currently trading at £18.50 per share. A put option has been issued...
Nightingale Plc.’s shares are currently trading at £18.50 per share. A put option has been issued with Nightingale’s shares as the underlying asset, which has a strike price of £18.00 per share and a call premium of £0.84 per share. Given the information above, the time value of the call option would be: (a) £0.84. (b) £0.00. (c) £0.34.
Shares in ABC plc are currently trading at $5 per share. The share has volatility of...
Shares in ABC plc are currently trading at $5 per share. The share has volatility of 22% per annum and the risk-free rate of interest is 1.5% per annum. According to the Black-Scholes-Merton (1973) approach, what is the delta of an at-the-money, 3-month European put option written on one ABC share. (DETAILED WORKINGS PLEASE) a. -0.5355 b. -0.464505 c. 0.535495 d. 0.508341 e. -0.49166
Suppose that a company currently trades for $35.25 per share and has 4,000,000 shares outstanding. The...
Suppose that a company currently trades for $35.25 per share and has 4,000,000 shares outstanding. The firm has 6 directors up for election this year. If the firm uses straight voting, how many shares will you need to purchase if you already own 500,000 shares. (Enter a whole number)
Apr 1 Issued 6,000 common shares at $8 per share. June 15 Declared a 5% stock...
Apr 1 Issued 6,000 common shares at $8 per share. June 15 Declared a 5% stock dividend to shareholders of record on September 5, distributable on September 20. The shares were trading for $10 a share at this time. Sep. 21 Announced a 1-for-2 reverse stock split. Shares were trading at $8 per share at the time. Nov. 1 Issued 3,000 common shares at $18 per share. Dec. 20 Repurchased 10,000 common shares for $16 per share. This was the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT