Take the figures for Holding plc (Section 34.3) and assume that the shareholders in the company decide
Question:
Take the figures for Holding plc (Section 34.3) and assume that the shareholders in the company decide to pay out a cash dividend of
£13,380 totally financed by the sale of 63 shares in Daughter plc
(£13,380 / £2,230).
What is the new value of Holding plc's equity according to the options theory?
What is the value of Holding plc's debt according to the options theory?
What is the yield to maturity?
What is the result of the operation?
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Related Book For 
Corporate Finance Theory And Practice
ISBN: 9781119841623
6th Edition
Authors: Pascal Quiry, Yann Le Fur, Pierre Vernimmen
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