Question
Acme Explosives Inc. is an international producer of creative demolition products. Selected financial information for Acme is provided in the table below. Acme wants to
Acme Explosives Inc. is an international producer of creative demolition products. Selected financial information for Acme is provided in the table below. Acme wants to distribute all of its cash with a special dividend. The stock price and market capitalization of the company immediately after the announcement are shown in the table. What price will the stock trade at on the ex-dividend day?
Selected Financial Information for Acne Corp:
Cash $28,738.2M
Market Capitalization $177,809.7M
Shares Outstanding 6,330M
Stock Price $28.09
Debt $0
---------------------
a. $22.91 b. $23.55 c. $26.33 d. $28.09 e. $31.11
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Challenging Global Finance
Authors: Elizabeth Friesen
2012th Edition
0230348793, 978-0230348790
