Question
A firm has a total market value of assets of $100 million, of which $10 million is in cash. It has debt of $25 million.
A firm has a total market value of assets of $100 million, of which $10 million is in cash. It has debt of $25 million. If the firm were to pay $5 million cash dividend, what would the new price per share be? There are 4.5 million shares outstanding.
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Finance Applications And Theory
Authors: Marcia Cornett, Troy Adair, John Nofsinger
6th Edition
1264101589, 9781264101580
