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A firm has a market value equal to its book value. Currently, the firm has excess cash of $500 and .4 other assets of $10,000.
A firm has a market value equal to its book value. Currently, the firm has excess cash of $500 and .4 other assets of $10,000. Equity is worth $10,500. The firm has 250 shares of stock outstanding and net income of $1,400. What will the stock price per share be if the firm pays out its excess * ?cash as a cash dividend (2 (2 ) $50 O $60 O $40 O $45 O
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