Saguaro Company currently has 30,000 shares outstanding. Each share has a market value of $20. If the

Question:

Saguaro Company currently has 30,000 shares outstanding. Each share has a market value of $20. If the firm pays $5 per share in dividends, what will each share be worth aft er the payment? Ignore taxes.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...