Multiple Choice
Bakersfield Industries has a market value equal to its book value. Currently, the firm has excess cash of $750 and other assets of $19,400. Equity is worth $11,500. Bakersfield has 450 shares of stock outstanding and net income of $630. The firm has decided to pay out all of its excess cash as a cash dividend. What will the earnings per share be after the dividend is paid?
A) -$.27
B) $0.00
C) $.73
D) $1.01
E) $1.40
Correct Answer:
Verified
Correct Answer:
Verified
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