Multiple Choice
A firm has a market value equal to its book value. Currently,the firm has excess cash of $500 and other assets of $9,500. Equity is worth $10,000. The firm has 250 shares of stock outstanding and net income of $1,400. What will the stock price per share be if the firm pays out its excess cash as a cash dividend?
A) $36
B) $38
C) $40
D) $42
E) $44
Correct Answer:
Verified
Correct Answer:
Verified
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