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Question 3 The value of a share of stock currently selling for $50 after a 1 for 5 split is: $10 $200 $250 $500
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Answer #1

Answer: The correct option is $10

In the question, 1 for 5 refers to a reverse stock split. It means merging 5 existing stocks into one new stock.
So, before merging, the stock price =50/5=10

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