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

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Definitions:

Situational Cues

Environmental signals that can affect an individual's behavior or perception in a given context.

Interpersonal Communication

The process of exchanging information, feelings, and meanings through verbal and non-verbal messages face-to-face between two or more people.

Nonverbal Behavior

Communication without the use of spoken language, including gestures, facial expressions, body language, and other physical cues.

Situational Cues

Environmental indicators or signals that provide context or influence individuals' perceptions and behaviors in a given situation.