A Firm Has a Total Market Value of Assets of $300

Multiple Choice

A firm has a total market value of assets of $300 million that includes $60 million of cash and 10 million shares outstanding. The firm uses $30 million of its cash to pay dividends. If an investor has 1000 shares, how many shares must he sell to create a homemade dividend of $3,900?

A) 33.33 shares
B) 26.67 shares
C) 40.00 shares
D) 46.67 shares