A corporate issuer declares a reverse stock split. After the split is effected, which of the following statements are TRUE?

A corporate issuer declares a reverse stock split. After the split is effected, which of the following statements are TRUE?



I The market price of the corporation's shares will increase

II The market price of the corporation's shares will decrease

III The reported earnings per common share will increase

IV The reported earnings per common share will decrease



Answer: I and III


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