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Hewlard Pocket's market value balance sheet is given. Pocket needs to hold on to $ 6 8 , 0 0 0 of cash for a
Hewlard Pocket's market value balance sheet is given.
Pocket needs to hold on to $ of cash for a future investment. Nevertheless, it decides to pay a cash dividend of $ per
share and to replace cash as needed 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 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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