Question
The company Gamma Inc. Has the following Balance Sheet data: Cash 50.000 Fixed Assets 450.000 Debt: 100.000 Equity :400.000 There are 1.000 shares outstanding. The
The company Gamma Inc. Has the following Balance Sheet data: Cash 50.000 Fixed Assets 450.000 Debt: 100.000 Equity :400.000 There are 1.000 shares outstanding. The company has decided to declare dividends for 50.000, but its still deciding whether to pay them cash or to make a stock dividend.
Show the Balance sheet after the dividend in both cases.
What is the price per share before and after the dividend in the case of cash dividend?
What is the price per share before and after the dividend in the case of stock dividend?
Which would be your choice and why?
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Finance Applications And Theory
Authors: Marcia Cornett, Troy Adair, John Nofsinger
6th Edition
1264101589, 9781264101580
