Consider company Macrosoft, whose current stock price is 542. The board of directors of Macrosoft has decided to engage a spin-off. Each shareholder of Macrosoft will receive 3.50232 shares of Coco Colo, whose stock price is 8.34, for each share of Macrosoft owned. Consider an investor who currently owns 152 shares of Macrosoft. What is the amount of cash that this investor will receive after that spin-off? A) 4436.88 B) 2.941 C) 4439.821 D) 636.781

Consider company Macrosoft, whose current stock price is 542. The board of directors of Macrosoft has decided to engage a spin-off. Each shareholder of Macrosoft will receive 3.50232 shares of Coco Colo, whose stock price is 8.34, for each share of Macrosoft owned. Consider an investor who currently owns 152 shares of Macrosoft. What is the amount of cash that this investor will receive after that spin-off? A) 4436.88 B) 2.941 C) 4439.821 D) 636.781

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation

Section: Chapter Questions

Problem 9MC

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H3. Consider company Macrosoft, whose current stock price is 542. The board of directorsof Macrosoft has decided to engage a spin-off. Each shareholder of Macrosoft willreceive 3.50232 shares of Coco Colo, whose stock price is 8.34, for each share ofMacrosoft owned. Consider an investor who currently owns 152 shares of Macrosoft.What is the amount of cash that this investor will receive after that spin-off?A) 4436.88B) 2.941C) 4439.821D) 636.781 Please show proper step by step calculation
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