The net income of Novis Corporation, which has 10,000 outstanding shares and a 100-percent payout policy, is

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The net income of Novis Corporation, which has 10,000 outstanding shares and a 100-percent payout policy, is $32,000. The expected value of the firm one year hence is $1,545,600. The appropriate discount rate for Novis is 12 percent.

a. What is the current value of the firm?

b. What is the ex-dividend price of Novis's stock if the board follows its current policy?

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Corporate Finance Core Principles and Applications

ISBN: 978-0077905200

3rd edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford

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Posted Date: Jun 29, 2022 01:57 AM

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The net income of Novis Corporation, which has 10,000 outstanding shares and a 100-percent payout policy, is

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Corporate Finance Core Principles and Applications

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