The Baldwin Locomotive Works Inc. manufactures steam locomotives for North American railways. Selected financial information for Baldwin is provided in the table below. The CFO, Matthias Baldwin, wants to distribute$1B of cash by means of an extra dividend. What will the stock price be after the dividend?

Baldwin Locomotive Works Inc.

Selected Financial Information

Stock Price $62.725

Cash $1,000M

Market Capitalization $9,408.75M

Shares Outstanding 150M

Debt $0

 

Answer rating: 100% (QA)

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