R Co. has outstanding 100 million shares, $1 par common shares, selling for $8 per share. After a 1 for 4 reverse stock split:
A. R would have 25 million shares, $4 par per share.
B. The market price per share would be about $2.
C. Fractional shares would be issued.
D. Retained earnings would be reduced.
Answer: A
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