The CEO of Trans World Airlines (TWA), Jack Frye, wants to distribute $1B of cash by issuing a special dividend. Selected financial information for TWA is provided in the table below. Mr. Frye owns 51% of the common shares of TWA before the extra dividend. What is his total wealth in cash and shares after the special dividend? Trans World Airlines
Selected Financial Information
$$\begin{array} { | c | c | }
\hline \text { Stock Price } & \$ 62.725 \
\hline \text { Cash } & \$ 1,000 \mathrm { M } \
\hline \text { Market Capitalization } & \$ 9,408.75 \mathrm { M } \
\hline \text { Shares Outstanding } & 150 \mathrm { M } \
\hline \text { Debt } & \$ 0 \
\hline
\end{array}$$

Question

The CEO of Trans World Airlines (TWA), Jack Frye, wants to distribute $1B of cash by issuing a special dividend. Selected financial information for TWA is provided in the table below. Mr. Frye owns 51% of the common shares of TWA before the extra dividend. What is his total wealth in cash and shares after the special dividend? Trans World Airlines
Selected Financial Information
$$\begin{array} { | c | c | } 
\hline \text { Stock Price } & \$ 62.725 \
\hline \text { Cash } & \$ 1,000 \mathrm { M } \
\hline \text { Market Capitalization } & \$ 9,408.75 \mathrm { M } \
\hline \text { Shares Outstanding } & 150 \mathrm { M } \
\hline \text { Debt } & \$ 0 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of The CEO of Trans World Airlines (TWA), Jack Frye, wants to distribute $1B of cash by issuing a special dividend. Selected financial information for TWA is provided in the table below. Mr. Frye owns 51% of the common shares of TWA before the extra dividend. What is his total wealth in cash and shares after the special dividend? Trans World Airlines
Selected Financial Information
$$\begin{array} { | c | c | } 
\hline \text { Stock Price } & \$ 62.725 \
\hline \text { Cash } & \$ 1,000 \mathrm { M } \
\hline \text { Market Capitalization } & \$ 9,408.75 \mathrm { M } \
\hline \text { Shares Outstanding } & 150 \mathrm { M } \
\hline \text { Debt } & \$ 0 \
\hline
\end{array}$$

The CEO of Trans World Airlines (TWA), Jack Frye, Wants