Note: On February 29, 2009, GE announced plans to cut its quarterly dividend from $0.31 to...

 

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Note: On February 29, 2009, GE announced plans to cut its quarterly dividend from $0.31 to $0.10 per share. a. If G has 10.6 billion shares outstanding, how much cash will GE save each year by cutting the dividend? b. In the two days surrounding GE's announcement, its stock fell from $9.03 to $7.54 per share. What is the decline in GE's total market value over this period? c. Does this answer to part b seem appropriate given the answer to part a? Why or why not? Note: On February 29, 2009, GE announced plans to cut its quarterly dividend from $0.31 to $0.10 per share. a. If G has 10.6 billion shares outstanding, how much cash will GE save each year by cutting the dividend? b. In the two days surrounding GE's announcement, its stock fell from $9.03 to $7.54 per share. What is the decline in GE's total market value over this period? c. Does this answer to part b seem appropriate given the answer to part a? Why or why not?

Answer rating: 100% (QA)

a To calculate the amount of cash GE will save each year by cutting the dividend we need to multiply the reduction in dividend per share by the number ... View the full answer