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According to the M&M dividend irrelevance theory,Xyz plc currently has a 2 million shares outstanding, selling at #4 each. The firm is considering declaring a
According to the M&M dividend irrelevance theory,Xyz plc currently has a 2 million shares outstanding, selling at #4 each. The firm is considering declaring a dividend of #1.50 per share at the end of the financial year. The firm has has a net profit of #10 million to make a new investment of #15 million. The capitalization rate appropriate to it's risk class is 12%. what will be the price of the share at the end of the fiscal year if a. dividend is not declared b.dividend is declared c. how many new shares must the firm issue.
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