A firm has a market value equal to its book value currently


Question: A firm has a market value equal to its book value. Currently, the firm has excess cash of $11, 500 and other assets of $28, 500. Equity Is worth $40,000. The firm has 950 shares of stock outstanding and net Income of $3, 800. What will the stock price per share be If the firm pays out Its excess cash as a cash dividend?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: A firm has a market value equal to its book value currently
Reference No:- TGS02769903

Expected delivery within 24 Hours