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Question
Neal Fabricators just liquidated its poorest performing division and realized net proceeds from the transaction of $2.6 million. The firm has 180,000 shares of stock outstanding at a market price of $64 a share. Which one of the following is the best estimate of the stock's post-dividend price per share if the firm distributes the entire liquidation proceeds in the form of a liquidating dividend? Ignore taxes and market imperfections.
A. $49.56
B. $51.38
C. $53.40
D. $58.79
E. $64.00
Answer
This answer is hidden. It contains 54 characters.
Related questions
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Which one of the following statements is correct?
A. If a firm decreases its inventory period, its accounts receivable period will also decrease.
B. The longer the cash cycle, the more cash a firm typically has available to invest.
C. A firm would prefer a negative cash cycle over a positive cash cycle.
D. Decreasing the inventory period will also decrease the payables period.
E. Both the operating cycle and the cash cycle must be positive values.
Q:
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B. Increase in inventory period
C. Decrease in cash cycle
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B. Hardware store
C. Furniture store
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Which one of the following statements is true, all else constant?
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B. Paying a supplier within the discount period, rather than waiting until the end of the normal credit period, will decrease the cash cycle.
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Q:
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B. The only difference between a term loan and a private placement is the size of the issue.
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Q:
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B. Monday, November 30
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Q:
Which one of the following dates is the date on which the board of directors votes to pay a dividend?
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B. Declaration date
C. Ex-dividend date
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Q:
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C. Short-term versus long-term investments
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Q:
The ex-dividend date is defined as _____ day(s) before the date of record.
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C. two business
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E. one