Assume this fаct pаttern fоr questiоns 9 - 15 A cоmpаny is an industry which is receiving a lot of public scrutiny. Politicians are complaining that companies in the industry are extremely profitable and should be taxed at a higher rate. The company has argued that these are only “paper” profits, and pointed to the fact that their inventory acquisition costs have been soaring. However, to defray some of the negative publicity, the company wants to appear less profitable. Indicate how this strategy will affect net income: Announce a reverse stock split (1:2).