Suppose that Demiconductor pays out only $0.5 million in cash. a. What would happen to the value

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Suppose that Demiconductor pays out only $0.5 million in cash.

a. What would happen to the value of the company if it pays it out as a dividend? What if it pays it out by repurchasing stock?

b. What would happen to the price per share if it pays the money out as a dividend?

What if it is paid out by a stock repurchase?

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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