Question
FCF Co. has 19,000 shares outstanding and a total market value of $1 million, $320,000 of which is debt and the other $680,000 is equity.
FCF Co. has 19,000 shares outstanding and a total market value of $1 million, $320,000 of which is debt and the other $680,000 is equity. It is planning a 10% stock dividend.
a. What is the stock price before thedividend, and what will it be after thedividend?
b. If an investor owns 2250 shares before thedividend, what will be the total value of her investment in FCF before and after thedividend?
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Principles of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix
Arab World Edition
1408271583, 978-1408271582
