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5 June, 16:48

The Olive Vase has 56,000 shares of stock outstanding with a par value of $1 per share and a market value of $11 a share. The company just announced a 3-for-4 reverse stock split. Currently, you own 400 shares of this stock. What will the total value of your shares be after the reverse stock split?

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  1. 5 June, 17:11
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    The total value of your shares be after the reverse stock split is $5,500

    Explanation:

    The total value of your shares will not change.

    Consider the following calculation to obtain the answer

    Total value = 500 (3/4) * $11 (4/3) = $5,500
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