A firm with 2,000 outstanding shares selling for $10 each does not have the cash to pay its dividend.In an ideal MM world, how many new shares must be sold and at what price to pay a $2 dividend per share to old shareholders?
A)sell 2,000 shares at a price of $2 each
B)sell 667 shares at a price of $6 each
C)sell 500 shares at a price of $8 each
D)sell 400 shares at a price of $10 each

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The Answer of A firm with 2,000 outstanding shares selling for $10 each does not have the cash to pay its dividend.In an ideal MM world, how many new shares must be sold and at what price to pay a $2 dividend per share to old shareholders?
A)sell 2,000 shares at a price of $2 each
B)sell 667 shares at a price of $6 each
C)sell 500 shares at a price of $8 each
D)sell 400 shares at a price of $10 each

A Firm with 2,000 Outstanding Shares Selling for $10 Each