Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The answer is C. Why? 50. NOP has 30 million shares outstanding and must pay 35% in taxes, They announce a payout of $50 million
The answer is C. Why?
50. NOP has 30 million shares outstanding and must pay 35% in taxes, They announce a payout of $50 million in cash through a special dividend. Shareholders previously assumed that NOP would retain this excess cash permanently. What is the amount that NOP's share price is expected to change upon announcement closest to? A) $0.55 B) $0.52 C) $0.58 D) $0.61Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started