Suppose a company was going to pay out one-half of its total assets as a cash dividend.

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Suppose a company was going to pay out one-half of its total assets as a cash dividend. What would you expect to happen to the value of the company’s stock as a result of the dividend?

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Introduction to Financial Accounting

ISBN: 978-0133251036

11th edition

Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick

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Question Posted: Feb 20, 2015 08:30 AM

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Suppose a company was going to pay out one-half of its total assets as a cash dividend.

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Theoretically the stock price will drop by the amount of ...View the full answer

Introduction to Financial Accounting

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