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The Equity of Blooming Roses Has a Total Market Value

Question 72

Multiple Choice

The equity of Blooming Roses has a total market value of $16,000.Currently,the firm has excess cash of $1,400 and net income of $15,400.There are 750 shares of stock outstanding.What will be the percentage change in the stock price per share if the firm pays out all of its excess cash as a cash dividend?


A) -9.40 percent
B) -8.75 percent
C) -7.50 percent
D) -2.75 percent
E) 0.00 percent

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