Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
4th Edition
ISBN: 9780134083278
Author: Jonathan Berk, Peter DeMarzo
Publisher: PEARSON
Question
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Chapter 17, Problem 34P
Summary Introduction

To discuss: The advantageous time to take the reverse stock split.

Introduction:

Reverse stock split is the method that is used to reduce a company’s share value that is outstanding and to increase the price per share. Reverse stock split is the opposite of forward stock splits. This works normally as a regular dividend resulting in a reverse action.

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Students have asked these similar questions
What is the primary motivation for a forward stock split?
In your opinion, what is the most compelling justification for a forward stock split?
What is the major reason for a forward stock split?

Chapter 17 Solutions

Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book

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