James Fabricators just liquidated its poorest performing division and realized net proceeds from the transaction of $2.2 million.The firm has 200,000 shares of stock outstanding at a market price of $62 a share.Which one of the following is the best estimate of the stock's post-dividend price per share if the firm distributes the entire liquidation proceeds in the form of a liquidating dividend? Ignore taxes and market imperfections.
A) $51.00
B) $51.38
C) $53.40
D) $58.79
E) $62.00
Correct Answer:
Verified
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