A fiRm Has a Market Value Equal to Its Book

question 3

Multiple Choice

A firm has a market value equal to its book value.Currently, the firm has excess cash of £500 and other assets of £9,500.Equity is worth £10,000.The firm has 250 shares outstanding and net
Income of £1,400.What will the share price be if the firm pays out its excess cash as a cash
Dividend?

• A)£36
• B)£38
• C)£40
• D)£42
• E)£44

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Definitions:

Positron Emission Tomography

A nuclear medicine functional imaging technique used to observe metabolic processes in the body by detecting pairs of gamma rays emitted indirectly by a positron-emitting radionuclide.

Behavior Modification

Techniques based on learning principles used to change maladaptive or undesirable behaviors into more positive actions.

Shaping

A method of conditioning in which successive approximations of a target behavior are reinforced until the desired behavior is achieved.

Autistic Children

Refers to children on the autism spectrum, characterized by variations in social interaction, communication, and behavior.