Value of share after the dividend payout


A firm is all equity financed, with 10,000 outstanding shares with a market value of $20 each. Its net income was $30,000, and it decides to pay a cash dividend of $2,000. Calculate the value of each share after the dividend payout.

A. $22.8

B. $20.0

C. $19.8

D. Not enough information

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Finance Basics: Value of share after the dividend payout
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