Question
FCF Co. has 18 comma 000 shares outstanding and a total market value of $ 1 million, $ 260 comma 000 of which is debt
FCF Co. has 18 comma 000 shares outstanding and a total market value of $ 1 million, $ 260 comma 000 of which is debt and the other $ 740 comma 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 3000 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 $ nothing.
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