P6.19 On February 29, 2009, GE announced plans to cut its quarterly dividend from $0.31 to $0.10
Question:
P6.19 On February 29, 2009, GE announced plans to cut its quarterly dividend from $0.31 to $0.10 per share.
a. If GE has 10.6 billion shares outstanding, how much cash will GE save each year by cutting the dividend?
b. In the two days surrounding GE's announcement, its stock fell from $9.03 to $7.54 per share. What is the decline in GE's total market value over this period?
c. Does this answer to part b seem appropriate given the answer to part a? Why or why not?
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Related Book For 
Fundamentals Of Investing
ISBN: 9780136117049
11th Edition
Authors: Lawrence J. Gitman, Michael D. Joehnk, Scott B. Smart, Scott J. Smart
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