Question
XYZ Corporation currently has 100M shares outstanding and the company plans to distribute $200M of profits to shareholders. Its stock is currently trading at $20
XYZ Corporation currently has 100M shares outstanding and the company plans to distribute $200M of profits to shareholders. Its stock is currently trading at $20 per share. If the company distribute the profits in the form of cash dividends, what should be the price per share and equity market value of the company after the payout?
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Managerial Economics
Authors: Paul Keat, Philip K Young, Steve Erfle
7th edition
0133020266, 978-0133020267
