Question
Hewlard Pocket s market value balance sheet is given Assets A Original balance sheet Cash Other assets Value of firm Liabilities and Shareholders Equity 150
Hewlard Pocket s market value balance sheet is given Assets A Original balance sheet Cash Other assets Value of firm Liabilities and Shareholders Equity 150 000 950 000 Debt Equity 1 100 000 Value of firm Shares outstanding 100 000 Price per share 1 100 000 100 000 11 0 1 100 000 1 100 000 Pocket needs to hold on to 50 000 of cash for a future investment Nevertheless it decides to pay a cash dividend of 2 per share and to replace the cash with a new issue of shares After the dividend is paid and the new stock is issued a What will be the price per share Note Do not round intermediate calculations Round your answer to 2 decimal places b What will be the total value of the company Note Enter your answers in whole dollars not in millions c What will be the total value of the stock held by new investors Note Do not round intermediate calculations Enter your answers in whole dollars not in millions Round your answer to the nearest whole dollar amount d What will be the wealth of the existing investors including the dividend payment Note Do not round intermediate calculations Enter your answers in whole dollars not in millions Round your answer to the nearest whole dollar amount
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