A firm has a stock price of $1.20 per share and 900,000 shares outstanding. It...
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Accounting
A firm has a stock price of $1.20 per share and 900,000 shares outstanding. It decides to do a 1-for-9 reverse stock split. After the reverse split, the market price goes to $11 per share. How much have the stockholders gained or lost from the reverse split?
A. Gained $1,100,000
B. Gained $100,000
C. Zero
D. Gained $20,000
E. None of the above
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