The shares owned by Dean Smith after reverse stock split. Introduction: Reverse Stock Split: A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

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Answer 1

Question

Chapter 18, Problem 20P

a.

Summary Introduction

To calculate: The shares owned by Dean Smith after reverse stock split.

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

b.

Summary Introduction

To calculate: The anticipated stock price post reverse stock split.

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

c.

Summary Introduction

To calculate: The actual price of the stock on the basis of the assumption that stock would go up, but only up to 80% of the value computed in part (b).

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

d.

Summary Introduction

To calculate: The change in the value of the holdings of Dean Smith from before the reverse stock split to after it.

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

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Companies sometimes consider stock splits to bring down the price so that the stock attracts more purchases. Consider the following case: Tolbotics Inc. currently has 20,000 shares of common stock outstanding. Its management believes that its current stock price of $90 per share is too high. The company is planning to conduct stock splits in the ratio of 2 for 1 as described in the animation.

Worst Buy Company has had a lot of complaints from customers of late, and its stock price is now only $4 per share. It is going to employ a one-for-six reverse stock split to increase the stock value. Assume Dean Smith owns 180 shares. a. How many shares will he own after the reverse stock split? (Do not round intermediate calculations and round your answer to the nearest whole number.) Number of shares

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Answer 2

Question

Chapter 18, Problem 20P

a.

Summary Introduction

To calculate: The shares owned by Dean Smith after reverse stock split.

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

b.

Summary Introduction

To calculate: The anticipated stock price post reverse stock split.

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

c.

Summary Introduction

To calculate: The actual price of the stock on the basis of the assumption that stock would go up, but only up to 80% of the value computed in part (b).

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

d.

Summary Introduction

To calculate: The change in the value of the holdings of Dean Smith from before the reverse stock split to after it.

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

Expert Solution & Answer

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Answer 3

Question

Chapter 18, Problem 20P

a.

Summary Introduction

To calculate: The shares owned by Dean Smith after reverse stock split.

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

b.

Summary Introduction

To calculate: The anticipated stock price post reverse stock split.

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

c.

Summary Introduction

To calculate: The actual price of the stock on the basis of the assumption that stock would go up, but only up to 80% of the value computed in part (b).

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

d.

Summary Introduction

To calculate: The change in the value of the holdings of Dean Smith from before the reverse stock split to after it.

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

Expert Solution & Answer

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Answer 4

Question

Chapter 18, Problem 20P

a.

Summary Introduction

To calculate: The shares owned by Dean Smith after reverse stock split.

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

b.

Summary Introduction

To calculate: The anticipated stock price post reverse stock split.

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

c.

Summary Introduction

To calculate: The actual price of the stock on the basis of the assumption that stock would go up, but only up to 80% of the value computed in part (b).

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

d.

Summary Introduction

To calculate: The change in the value of the holdings of Dean Smith from before the reverse stock split to after it.

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

Expert Solution & Answer

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Answer 5

Chapter 18, Problem 20P

a.

Summary Introduction

To calculate: The shares owned by Dean Smith after reverse stock split.

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

b.

Summary Introduction

To calculate: The anticipated stock price post reverse stock split.

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

c.

Summary Introduction

To calculate: The actual price of the stock on the basis of the assumption that stock would go up, but only up to 80% of the value computed in part (b).

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

d.

Summary Introduction

To calculate: The change in the value of the holdings of Dean Smith from before the reverse stock split to after it.

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

Answer 6

Chapter 18, Problem 20P

a.

Summary Introduction

To calculate: The shares owned by Dean Smith after reverse stock split.

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

Answer 7

Chapter 18, Problem 20P

a.

Summary Introduction

To calculate: The shares owned by Dean Smith after reverse stock split.

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

Answer 8

b.

Summary Introduction

To calculate: The anticipated stock price post reverse stock split.

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

Answer 9

b.

Summary Introduction

To calculate: The anticipated stock price post reverse stock split.

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

Answer 10

c.

Summary Introduction

To calculate: The actual price of the stock on the basis of the assumption that stock would go up, but only up to 80% of the value computed in part (b).

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

Answer 11

c.

Summary Introduction

To calculate: The actual price of the stock on the basis of the assumption that stock would go up, but only up to 80% of the value computed in part (b).

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

Answer 12

d.

Summary Introduction

To calculate: The change in the value of the holdings of Dean Smith from before the reverse stock split to after it.

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

Answer 13

d.

Summary Introduction

To calculate: The change in the value of the holdings of Dean Smith from before the reverse stock split to after it.

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 18 - Prob. 1DQ Ch. 18 - Prob. 2DQ Ch. 18 - Prob. 3DQ Ch. 18 - Prob. 4DQ Ch. 18 - Prob. 5DQ Ch. 18 - Prob. 6DQ Ch. 18 - Prob. 7DQ Ch. 18 - Prob. 8DQ Ch. 18 - Prob. 9DQ Ch. 18 - Prob. 10DQ

The shares owned by Dean Smith after reverse stock split. Introduction: Reverse Stock Split: A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

Solution Summary: The author explains how to calculate the shares owned by Dean Smith after reverse stock split.

Videos

To calculate: The shares owned by Dean Smith after reverse stock split.

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

To calculate: The anticipated stock price post reverse stock split.

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

Want to see the full answer?

Chapter 18 Solutions

The shares owned by Dean Smith after reverse stock split. Introduction: Reverse Stock Split: A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

Solution Summary: The author explains how to calculate the shares owned by Dean Smith after reverse stock split.

Videos

To calculate: The shares owned by Dean Smith after reverse stock split. Introduction: Reverse Stock Split: A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

To calculate: The anticipated stock price post reverse stock split. Introduction: Reverse Stock Split: A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

Want to see the full answer?

Chapter 18 Solutions

To calculate: The shares owned by Dean Smith after reverse stock split.

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.

To calculate: The anticipated stock price post reverse stock split.

Introduction:

Reverse Stock Split:

A corporate procedure through which the management of a company consolidates its current shares to decrease the number of shares outstanding is termed as reverse stock split or stock merge.