Bakersﬁeld Industries has a market value equal to its book value. Currently, the ﬁrm has excess cash of $750 and other assets of $19,400. Equity is worth $11,500. Bakersﬁeld has 450 shares of
Stock outstanding and net income of $630. 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?

Question

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The Answer of Bakersﬁeld Industries has a market value equal to its book value. Currently, the ﬁrm has excess cash of $750 and other assets of $19,400. Equity is worth $11,500. Bakersﬁeld has 450 shares of
Stock outstanding and net income of $630. 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?

Bakersﬁeld Industries Has a Market Value Equal to Its Book