The Following Data Apply to Garber Industries, Inc The Company Plans on Distributing $100 as Dividend Payments

question 40

Multiple Choice

The following data apply to Garber Industries, Inc. (GII) :

$\begin{array}{l}\begin{array} { l } \text {Value of operations}\\\text {Short-term investments}\\\text {Debt}\\\text { Numher of shares }\end{array}\begin{array} { l } \$ 1,000 \\\$ 100 \\\$ 300\\\$ 100\end{array}\end{array}$

The company plans on distributing $100 as dividend payments. What will the intrinsic per share stock price be immediately after the distribution?

• A) $6.32
• B) $6.65
• C) $7.00
• D) $7.35
• E) $7.72

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Definitions:

Operating Expenses

Costs related to the day-to-day functions of a business, excluding cost of goods sold, but including items like rent, salaries, utilities, and depreciation.

Accrued Liabilities

Accrued liabilities refer to expenses that have been incurred but not yet paid for, recognized on the balance sheet.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Cash Paid

The total amount of currency that an entity disburses in exchange for goods or services or to settle debts.