Metal fabricators recently sold its poorest performing


Metal Fabricators recently sold its poorest performing division and realized netproceeds from the transaction of $1.63 million. The firm has 320,000 shares of stock outstanding and a market price of $49 a share. The firm is now preparing to distribute the entire sale proceeds in the form of a liquidating dividend. What is the best estimate of the ex-dividend stock price? Ignore taxes and market imperfections.

A. $43.91

B. $41.38

C. $44.40

D. $43.79

E. $44.14

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Financial Management: Metal fabricators recently sold its poorest performing
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