Lucky Buy Company’s stock has suffered due to several
warranty-related lawsuits filed against the company. The company
revamped their warranty program and introduced additional customer
services to improve the customer experience. Yet, its stock price
is only $13 per share. Management is planning a two-for-seven
reverse stock split to increase the stock price and bring it closer
to the average stock price in the industry. Assume that John
Thornton, the last remaining co-founder of the firm, owns 420,000
shares. (7...