Question
FCF Co. has 20,000 shares outstanding and a total market value of $1 million, $300,000 of which is debt and the other $700,000 is equity.
FCF Co. has 20,000 shares outstanding and a total market value of $1 million, $300,000 of which is debt and the other $700,000 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 1000 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 $? .(Round to the nearest cent.)
The stock price after the dividend will be $?. (Round to the nearest cent.)
b. If an investor owns 1000 shares before the dividend, what will be the total value of her investment in FCF before and after the dividend?
The total value of her investment before the dividend will be $. (Round to the nearest dollar.)
The total value of her investment after the dividend will be $.(Round to the nearest dollar.)
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International financial management
Authors: Jeff Madura
9th Edition
978-0324593495, 324568207, 324568193, 032459349X, 9780324568202, 9780324568196, 978-0324593471
