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Morris corporation has 1,000,000 shares outstanding with a price per share of $27.26 (previous to any dividend payment). It decides to pay out cash dividend

Morris corporation has 1,000,000 shares outstanding with a price per share of $27.26 (previous to any dividend payment).

It decides to pay out cash dividend of $2,000,000.

What will the share price be after the dividend has been paid?

Assume that Modigliani-Miller and its assumptions are true.

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