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Fitzroy Ltd. is a firm with 50 million shares outstanding and a corporate tax rate of 20%. Fitzroy has just announced that it will give
Fitzroy Ltd. is a firm with 50 million shares outstanding and a corporate tax rate of 20%. Fitzroy has just announced that it will give $75 million that it has in excess cash to its shareholders via a special cash dividend. However, its shareholders always thought that the company would keep this excess cash forever. The change in Fitzroys stock price as a result of this announcement is closest to:
Question 9 options:
| $0.30 |
| $0.50 |
| $0.80 |
| $1.10 |
| None of the above |
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