Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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White Chocolate Co. has a current period cash flow of $1.2 million and pays no dividends. The |
a. | What is the share price of the company's stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
b. | Suppose the board of directors of the company announces its plan to pay out 50 percent of its current cash flow as cash dividends to its shareholders. How can a shareholder who owns 1,200 shares of the stock achieve a zero payout policy on his own? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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