In Recent Years Constable Inc

Multiple Choice

In recent years Constable Inc.has suffered losses, and its stock currently sells for only $0.50 per share.Management wants to use a reverse split to get the price up to a more "reasonable" level, which it thinks is $25 per share.How many of the old shares must be given up for one new share to achieve the $25 price, assuming this transaction has no effect on total market value?

A) 47.50
B) 49.88
C) 50.00
D) 52.50
E) 55.13