A fiRm Has a Market Value Equal to Its Book

question 1

Multiple Choice

A firm has a market value equal to its book value.Currently, the firm has excess cash of £400 and other assets of £7,600.Equity is worth £8,000.The firm has 200 shares outstanding and net income
Of £900.The firm has decided to pay out all of its excess cash as a cash dividend.What will the
Earnings per share be after the dividend is paid?

• A)£0.25
• B)£0.45
• C)£2.50
• D)£3.80
• E)£4.50

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Definitions:

Occupational Health Psychology

A field of psychology that focuses on the study, prevention, and remediation of job stressors and health problems related to work environments and organizations.

Stress

A physical or emotional response to external pressures or demands, characterized by feelings of tension, worry, and physiological changes.

Disorders

Conditions characterized by dysfunction in cognition, emotions, or behavior due to genetic, biochemical, or psychological factors.

Hugo Munsterberg

A psychologist who is considered one of the founders of applied psychology.