ABC Corp. currently has $19 million in excess cash that it plans on returning to its shareholders through a dividend payment. ABC's current share price is $24.8 and it has 26.6 million shares outstanding. In addition, the market value of the company's debt is $12 million. Assuming perfect markets, what will the share price of ABC be after it pays the dividend?

Answer rating: 100% (QA)

Assuming perfect markets the share price of ABC Corp will decrease by ... View the full answer