Question
DB, Inc. is publicly traded with a stock price of $20 per share and 250,000,000 shares outstanding. It also expects to have earnings of $200,000,000.
DB, Inc. is publicly traded with a stock price of $20 per share and 250,000,000 shares outstanding. It also expects to have earnings of $200,000,000. DB has $550 million in surplus cash that it wants to pay to shareholders. One option is to pay a special dividend. The other option is to repurchase stock with the cash. Evaluate the two alternatives below (ignoring any information effects):
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Financial Management For Nurse Managers And Executives
Authors: Cheryl Jones, Steven A. Finkler, Christine T. Kovner
4th Edition
1455700886, 9781455700882
