Jensen's Has a Market Value Equal to Its Book Value,excess

question 85

Multiple Choice

Jensen's has a market value equal to its book value,excess cash of $500,other assets of $9,500,and equity worth $10,000.The firm has 250 shares of stock outstanding and net income of $1,400.What will be the stock price per share if the firm pays out its excess cash as a cash dividend?

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

---

Definitions:

Sociotechnical System

An approach to complex organizational work design that recognizes the interaction between people and technology in workplaces.

Task-Technology

The relationship between the tools and systems used in work processes and the tasks they are designed to support or enhance.

Organizational Effectiveness

The measure of how successfully an organization achieves its goals and objectives through the efficient use of resources.

Divisional Departmentalization

Organizational structure where divisions are formed based on products, services, or markets, with each division containing its own resources and functions.