Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
Giggle Inc reports the following abbreviated balance sheet: Cash = $10000 Other Asset = $20000 Debt = $0 Equity = $30000 Number of shares outstanding = 1000 Giggle just paid a cash dividend of $0
Giggle Inc reports the following abbreviated balance sheet: Cash = $10000
Other Asset = $20000
Debt = $0
Equity = $30000
Number of shares outstanding = 1000
Giggle just paid a cash dividend of $0.80 per share. What is the new share price after the dividend payment?
Expert Solution
Computation of the new share price after the dividend payment:-
Cash after dividend payment = $10,000 - (1,000*$0.80)
= $10,000 - $800
= $9,200
New share price = (Total assets - Debt) / Number of shares outstanding
= (($9,200+$20,000) - 0) / 1,000
= $29,200 / 1,000
= $29.20 per share
Archived Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
For ready-to-submit work, please order a fresh solution below.
