Answer:
The options are as follows:
R would have 25 million shares, $4 par per share.
The market price per share would be about $2.
Fractional shares would be issued.
Retained earnings would be reduced
The correct is R would have 25 million shares, $4 par per share
Explanation:
The normal split involves increasing the number of shares and reducing the price per share while the reverse stock-split entails reducing the number of shares and increasing price as further demonstrated below:
100 million*1/4=25 million shares
par price=$1*4/1=$4
