| Baker College | Undergraduate, ( x () Financial Analysis and Application X Question 4 - M7 CONNECT Prob X Course Hero * + X C https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheproducts%252FImsCloseWindow.htm#/activity/question-group/... A" to ... M7 CONNECT Problems i Saved Help Save & Exit Submit Check my work mode : This shows what is correct or Incorrect for the work you have completed so far. It does not Indicate completion. Return to questlor 4 Hewlard Pocket's market value balance sheet is given. Assets Liabilities and Shareholders' Equity 5 A. Original balance sheet points Cash $ 150,000 Debt $ Other assets 950, 000 Equity 1, 100, 000 Value of firm $ 1, 100, 000 Value of firm $1, 100, 090 + Shares outstanding = 100,006 Price per share = $1, 100,000 / 100,000 = $11 Pocket needs to hold on to $72,000 of cash for a future investment. Nevertheless, it decides to pay a cash dividend of $3.10 per share and to replace cash as needed with a new issue of shares. After the dividend is paid and the new stock is issued a. What will be the price per share? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) b. What will be the total value of the company? (Enter your answers In whole dollars, not In millions.) c. What will be the total value of the stock held by new investors? (Enter your answers in whole dollars, not in millions. Do not round Intermediate calculations. Round your answer to the nearest whole dollar amount.) d. What will be the wealth of the existing Investors Including the dividend payment? (Enter your answers In whole dollars, not In millions. Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) x Answer is complete but not entirely correct. a. Price 8.44 x per share b. Total value of the company 1,022,007 Total value of the stock held by new investors 178,007 X d. Existing shareholder wealth ,100,000 Activate Windows Go to Settings to activate Windows. Mc Type here to search 1:51 PM 88F Partly sunny ~ 9 7. 8/7/2022