A Firm Has a Market Value Equal to Its Book

question 73

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

---

Definitions:

Can-Do

Can-do describes an attitude of confidence, willingness, and a positive approach towards accomplishing tasks or confronting challenges.

Motivation

Motivation is the process that initiates, guides, and maintains goal-oriented behaviors, driven by needs, desires, and goals, influencing an individual's actions and performances.

Measurement Consistency

The degree to which a measurement tool or procedure yields the same results under consistent conditions over time.

Reliability

The degree to which an assessment tool produces stable and consistent results over time.