FCF Co. has 16,000 shares outstanding and a total market value of $1 million, $350 thousand of

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FCF Co. has 16,000 shares outstanding and a total market value of $1 million, $350 thousand of which is debt and the other $650 thousand is equity. It is planning a 10%

stock dividend.

a. What is the stock price before the dividend and what will it be after the dividend?

b. If an investor owns 2750 shares before the dividend, what will be the total value of her investment in FCF before and after the dividend?

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Fundamentals Of Corporate Finance

ISBN: 9781292437156

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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Question Posted: Feb 21, 2024 10:00 AM

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FCF Co. has 16,000 shares outstanding and a total market value of $1 million, $350 thousand of

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FCF Co Stock Price and Investors Investment a Stock Price Before dividend Total market value 1 milli...View the full answer

Fundamentals Of Corporate Finance

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