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There will be 80000 shares (=1600000/20) at a price of 7 dollars (0.35*20). In the end the market value of the firm will be the same.

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Q: What effect does a reverse stock split have on the price of shares given we have 1600000 shares outstanding and the share price is 35 cents and the split is reverse 1-20 what is the final price?
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How many outstanding shares does rbdc have as of 07 24 09?

Currently the company has 5,052,338,040 shares outstanding and 10,000,000,000 authorized.


What would cause common stock shares issued to exceed common stock shares outstanding?

declaration of a stock dividend


When did market capitalization begin?

Market capitalization begins at the start of any company. It is calculated by multiplying outstanding shares by the current market price of one share.


How do you find the initial sale price of common stock?

The formula is: Original price per share= (Common stock + Paid-in capital)/Number of shares outstanding. Warning: when doing finance homework, be careful to keep all the numbers in thousands when you add them, so you don't have mistakes.


If there is 48000 in earnings available to common stockholders and the firm's stock has a PE of 20 times earnings per share what is the current price of the stock?

There are two ways to answer this: Short and Long. First, short: PE = PPS/EPS ; PE = 20(EPS) as well. Substituting 20(EPS) for PE gives: 20(EPS) = PPS/EPS ; Multiply EPS on both sides to eliminate the fraction on the right side: 20(EPS)2= PPS So, Price per share = 20 times Earnings per share2 Long way: EPS = EAC/#shares ; Since we know EAC, it becomes EPS = 48,000/#shares Since PE = 20(EPS) using what we got from the short way, we can subsitute the EPS fraction into the left side: 20(48,000/#shares) = PPS/(48,000/#shares) ; Of course we would simplify it a little bit, multiplying 20 and 48,000 and multiplying the inverse of the denominator: 960,000/#shares = PPS * #shares/48,000 ; Multiply 48,000 on both sides and get: 46,080mil/#shares = PPS * #shares ; Multiply #shares on both sides and get: 46,080mil = PPS * #shares2 ; Finally, divide by #shares2 to isolate PPS and you get: PPS = 46,080mil/#shares2 So, you have PPS = 20(EPS)2 or PPS = 46,080mil/#shares2 Either way, you can't get a number answer because of the lack of data on the number of shares. If we had the number of shares outstanding, it would be pretty easy. I know it's an old question, but still, if anyone has a better way or a correction to make on what I did, feel free to do so.

Related questions

What is Difference between issued shares and outstanding shares - 41k?

Issued shares(I) are shares of stock that have been sold to investors. It includes both outstanding shares(O) and Treasury shares(T). Thus, I = O+T Outstanding shares(O) are shares of stock currently owned by the shareholders.


How many outstanding shares does rbdc have as of 07 24 09?

Currently the company has 5,052,338,040 shares outstanding and 10,000,000,000 authorized.


What is outstanding capital?

Outstanding capital refers to the number of shares that remain with the stockholders. This is the result of issued shared minus treasury shares and the dividends are paid based on these shares.


Is subscribed an outstanding shares?

yes


Treasury stock plus outstanding shares would be?

Issued Shares Authorized Shares = Issued Shares (sold to investors) + Unissued Shares Issued Shares = Outstanding Stock (held by investors) + Treasury Stock (stock bought back by company)


What is the effect of issuance of stock dividend to paid in capital?

Stock dividend changes the number of shares outstanding but it does not have any affect on amount of capital


Will a 10 percent stock dividend increase the number of shares outstanding and decrease the book value per share?

A 10% dividend not make any difference whatsoever to the number of issued shares. Neither will it effect the book value of its shares.


What do you mean by number of outstanding shares?

Number of shares held by investors for a company. For instance, if a company goes public and issues 100,000 shares, then the number of shares outstanding is 100,000. This number can be found on the balance sheet of a company!


What are all the ways to decrease the outstanding shares of a company?

A 'share buy back' is the main option in which a company can reduce the amount of outstanding shares. A company will purchase shares on the open market or work out a deal to buy shares from individual holders, and then retire the shares.


How many shares does Motorola have outstanding?

check a shares website it could tell you company profits, shares and debts!


The number of common shares outstanding can never be greater than the number of shares issued?

True


What is weighted average number of shares in accounting terms?

Weighted average number of shares = shares outstanding at start of year + shares at end of year / 2