Question: Question 2) ABC Corp. currently has $37 million in excess cash that it plans on returning to its shareholders through a dividend payment. ABC's current

Question 2) ABC Corp. currently has $37 million in excess cash that it plans on returning to its shareholders through a dividend payment. ABC's current share price is $16.2 and it has 31.7 million shares outstanding. In addition, the market value of the company's debt is $19 million. Assumingperfect markets, what is the dividend per share that ABC will be able to pay with the excess cash? Round your answer to two decimals (do not include the $-symbol in your answer)

Question 3) ABC Corp. currently has $46 million in excess cash that it plans on returning to its shareholders through a dividend payment. ABC's current share price is $24.6 and it has 26.1 million shares outstanding. In addition, the market value of the company's debt is $16 million. Assumingperfect markets, what will the share price of ABC be after it pays the dividend? Round your answer to two decimals (do not include the $-symbol in your answer)

Question 2) ABC Corp. currently has $37 million in excess cash thatit plans on returning to its shareholders through a dividend payment. ABC's

Question 2 5 points Save Answer ABC Corp. currently has $37 million in excess cash that it plans on returning to its shareholders through a dividend payment. ABC's current share price is $16.2 and it has 31.7 million shares outstanding. In addition, the market value of the company's debt is $19 million. Assuming perfect markets, what is the dividend per share that ABC will be able to pay with the excess cash? Round your answer to two decimals (do not include the $-symbol in your answer) Question 3 5 points Save Answer ABC Corp. currently has $46 million in excess cash that it plans on returning to its shareholders through a dividend payment. ABC's current share price is $24.6 and it has 26.1 million shares outstanding. In addition, the market value of the company's debt is $16 million. Assuming perfect markets, what will the share price of ABC be after it pays the dividend? Round your answer to two decimals (do not include the $-symbol in your answer)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!