Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

careful with this one 5 points Sre Answer ABC Corp. currently has $46 million in excess cash that it plans on returning to its shareholders

image text in transcribed
careful with this one
5 points Sre Answer ABC Corp. currently has $46 million in excess cash that it plans on returning to its shareholders through a dividend payment ABC's current share price is $24.6 and it has 26.1 million shares outstanding. In addition the market value of the company's debt is $16 million Assuming perfect markets, what will the share price of ABC be after it pays the dividend? Round your answer to two decimals (do not include the 5-symbol in your answer)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Islamic FinanceA Practical Perspective

Authors: Nafis Alam, Lokesh Gupta, Bala Shanmugam

1st Edition

3319665588, 9783319665580

More Books

Students also viewed these Finance questions