In 2022, TheMaven Inc. (which owns and/or operates media properties like TheStreet.com and Sports Illustrated) changed its name to The Arena Group Holdings and announced a 1-for-23 reverse stock split.Its stock price was approximately $0.44 per share when the announcement was made.a. If an investor had 5,750 shares before the split, how many shares will the investor have after the split? Round your answer to the nearest whole number.shares post-splitb. If the stock is trading for $0.38 immediately prior to the split, what is the expected price immediately after the split? Round your answer to the nearest cent.$c. If the stock opens at $0.42 and closes at $10.00 per share on the day of the split, what is the one-day return on the stock? Round your answer to two decimal places.%

In reverse stock split the small stocks are converted into large single stock to increase value of…

Answered: a. If an investor had 5,750 shares…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation

Section: Chapter Questions

Problem 9MC

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SoFi Technologies Inc. (SOFI) currently has 13 million shares of common stock outstanding and is selling for $215 a share. The company is planning to conduct a 5-for-1 stock split. If SOFI declares a 5-for-1 stock split, what will the price of the company’s stock be after the split—assuming that the total value of the firm’s stock remains the same before and after the split? How many shares of SOFI will be outstanding? Now imagine of instead of performing a stock split, SOFI decides to pay a stock dividend. If SOFI declares a 5.5% stock dividend, how many shares will the firm issue to existing shareholders? Now, in lieu of conducting a stock split or declaring a stock dividend, SOFI decides to buyback 1,500,000 shares of stock at market price. How much cash will it take to perform this buyback? Using the same information as Question #4, if SOFI performs the buyback, what should the new market share price be assuming the total value of the company hasn't changed? Round answer to…
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OldShoe, Inc. had 40,000 shares of common stock outstanding with a $15 par on August 24. 2019. The next day, the board of directors announced a 3-for-1 stock split. Calculate the effect of the stock split on the following: The number of shares outstanding after the split: ____________ The par value of the stock after the split: _________
You purchased some shares in Flying Dutchman.com on 12 August 2022, at price $67.41. On 09 November 2022 and 03 February 2023, Flying Dutchman.com paid dividends of $2.85 and $1.08, respectively. The price of the shares on 09 November 2022 was $65.85, while on 03 February 2023, it was $66.79. Finally, on 22 April 2023, you sold the shares for $67.81. What was your holding period return over the time you owned Flying Dutchman.com?
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2. Prepare the necessary journal entries for Vidalia's investment in Woodbine common stock. In 2022, Vidalia had the following activities in long-term investments: Question Group (1) May 10 Purchased 50,000 shares of Woodbine stock for $15 per share. Short Answer Attachment Upload (2) August 24 Short Answer 6 Received a cash dividend of $2 per share on Woodbine stock. Attachment Upload I (3) December 31 Woodbine reported net income of $478,000. Woodbine has 125,000 shares of common stock outstanding. Short Answer

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