Question
The market value of ABM Co. is $1 million, $400,000 of which is debt and the other $600,000 is equity. It has 25,000 shares outstanding,
The market value of ABM Co. is $1 million, $400,000 of which is debt and the other $600,000 is equity. It has 25,000 shares outstanding, and it is planning a 10% stock dividend.
If an investor owns 500 shares before the dividend, what will be the total value of her investment before the dividend? What will be ABMs stock price after the dividend? What will be the total value of her investment be after the dividend?
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Financial Markets and Institutions
Authors: Jeff Madura
11th Edition
1133947875, 9781305143005, 1305143000, 978-1133947875
