An all-equity financed company currently has $300 million in excess cash. -200 million shares outstanding, market price of each share is $15 -Board has decided to pay out this excess cash as a one-time special dividend to shareholders. -Assuming perfect capital markets, calculate the company’s ex-dividend price per share

An all-equity financed company currently has $300 million in excess cash. -200 million shares outstanding, market price of each share is $15 -Board has decided to pay out this excess cash as a one-time special dividend to shareholders. -Assuming perfect capital markets, calculate the company’s ex-dividend price per share

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter15: Distributions To Shareholders: Dividends And Repurchases

Section: Chapter Questions

Problem 3MC: Assume that IWT has completed its IPO and has a $112.5 million capital budget planned for the coming...

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