Letto and Sons Has a Market Value Equal to Its

question 326

Multiple Choice

Letto and Sons has a market value equal to its book value. Currently, the firm has excess cash of $250 and other assets of $16,800. Equity is worth $9,500. Letto has 300 shares of stock
Outstanding and net income of $550. What will the stock price per share be if the firm pays out its
Excess cash as a cash dividend?

• A) $29.67
• B) $30.83
• C) $31.04
• D) $32.11
• E) $32.67

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Definitions:

Obstructive sleep apnea

A disorder characterized by repeated interruptions in breathing during sleep due to the narrowing or blocking of the airway.

Respiratory status

The current health and functioning level of the respiratory system, assessing aspects like breathing rate and oxygen levels.

Neurological function

The operations and activities of the nervous system, including cognitive processes and physical responses.

Neonate

Stage of life from birth to 1 month of age.