Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

FCF Co. has 16,000 shares outstanding and a total market value of $1 million, $290,000 of which is debt and the other $710,000 is equity.

image text in transcribed

FCF Co. has 16,000 shares outstanding and a total market value of $1 million, $290,000 of which is debt and the other $710,000 is equity. It is planning a 10% stock dividend. a. What is the stock price before the dividend, and what will it be after the dividend? b. If an investor owns 2000 shares before the dividend, what will be the total value of her investment in FCF before and after the dividend? a. What is the stock price before the dividend and what will it be after the dividend? The stock price before the dividend is $ 44.38 . (Round to the nearest cent.) The stock price after the dividend will be $39.94. (Round to the nearest cent.)

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

Dividend Policy On Share Price Volatility In Indian Stock Market

Authors: Vijay Deswal

1st Edition

3841859623, 978-3841859624