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A companys common stock is currently selling at a price of $20 per share and the company has a net asset value (book value) of

  1. A companys common stock is currently selling at a price of $20 per share and the company has a net asset value (book value) of $10 per share. If the companys managers choose to pay a cash dividend to its shareholders of $2 per share out of retained earnings, how much will each share be worth immediately after the dividend has been paid?

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