Divido Corporation is an all-equity financed firm with a total market value of $100 million. The company holds $10 million in cash-equivalents and has $90 million in other assets. There are 1,000,000 shares of Divido common stock outstanding, each with a market price of $100. What would be the impact on Divido’s stock price and on the wealth of its shareholders of the following financial decisions?Pay a cash dividend of $10 per share.Repurchases 100,000 shares.Pay a 10% stock dividend.Make a 2-for-1 stock split.Issue $20 million of bonds and to repurchase $20 million worth of its stock.
Divido Corporation is an all-equity financed firm with a total market value of $100 million. The company holds $10 million in cash-equivalents and has $90 million in other assets. There are 1,000,000 shares of Divido common stock outstanding, each with a market price of $100. What would be the impact on Divido’s stock price and on the wealth of its shareholders of the following financial decisions?Pay a cash dividend of $10 per share.Repurchases 100,000 shares.Pay a 10% stock dividend.Make a 2-for-1 stock split.Issue $20 million of bonds and to repurchase $20 million worth of its stock.
发布时间:2024-09-27 14:17:44