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Question
The following data apply to Garber Industries, Inc. (GII):Value of operations $1,000
Short-term investments $100
Debt $300
Number of shares 100
The company plans on distributing $50 million as dividend payments. What will the intrinsic per share stock price be immediately after the distribution?
a. $6.32
b. $6.65
c. $7.00
d. $7.35
e. $7.72
Answer
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