Multiple Choice
A firm has a market value equal to its book value. Currently,the firm has excess cash of $400 and other assets of $7,600. Equity is worth $8,000. The firm has 200 shares of stock outstanding and net income of $900. 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) $0.25
B) $0.45
C) $2.50
D) $3.80
E) $4.50
Correct Answer:
Verified
Correct Answer:
Verified
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