A company is all-equity financed and has a market value of $1,000,000. There are 50,000 stocks currently

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A company is all-equity financed and has a market value of $1,000,000. There are 50,000 stocks currently outstanding.

a) If the company announces a $1 dividend per share, what would its stock price be before and after the dividend?

b) If the company decides to buy $50,000 worth of stock back, what would the stock price be after repurchase?

c) If the company announces a 300% stock dividend, what would be the stock price after new shares are distributed?

Related Book For answer-question

Financial Accounting

ISBN: 978-0538476010

11th edition

Authors: Belverd E. Needles, Marian Powers

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Posted Date: Jan 31, 2023 05:23 AM

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A company is all-equity financed and has a market value of $1,000,000. There are 50,000 stocks currently

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a The stock price before the dividend would be 20 per share 100000050000 The stock price aft... View the full answer

Financial Accounting

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