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Radina Technologies has assets with a market value of 600 million, 70 million of which are cash. It has debt of 250 million, and 20
Radina Technologies has assets with a market value of 600 million, 70 million of which are cash. It has debt of 250 million, and 20 million shares outstanding. Assume perfect capital markets 1. If Radina Technologies distributes the 70 million as a dividend, then calculate its stock price after the dividend is paid. 2. If Radina Technologies distributes the 70 million as a dividend, then calculate its debt-to-equity ratio after the dividend is paid. 3. Comment the results
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