Dividends and stock price go back to the first Rational Demiconductor balance sheet one more time. Assume

Question:

Dividends and stock price go back to the first Rational Demiconductor one more time. Assume that Rational does not win the lawsuit (see Problem 5) and is left with only $1 million in surplus cash. Nevertheless Rational decides to pay a cash of $2 per share. What must Rational do to finance the $2 if it holds its debt and investment policies constant? What happens to price per share?
In Problem 5
Go back to the first Rational Demiconductor Now assume that Rational wins a lawsuit and is paid $1 million in cash. Its market capitalization rises by that amount. It decides to pay out $2 per share instead of $1 per share. Explain what happens to Rational's stock price if
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...