Ajax Inc of Toronto Has a Market Value Equal to Its

Ajax Inc of Toronto has a market value equal to its book value. Currently, the firm has excess cash of $2,000 and other assets of $13,000. Equity is worth $15,000. The firm has 1,000 shares of stock outstanding and net income of $2,500. By what percent does the stock price per share change if the firm pays out its excess cash as a cash dividend?

A) -16.67 percent
B) -13.33 percent
C) 0.00 percent
D) 13.33 percent
E) 16.67 percent