Assume that Omicron uses the entire $50 million in excess cash to pay a special dividend.The amount of the regular yearly dividends in the future is closest to:

Question

Quizplus · Accepted Answer

If Omicron uses the entire $50 million to pay a special dividend, their regular yearly dividend payment will not be affected. This means that the regular yearly dividend payment will remain at $4 per share, as stated in the question stem.

Therefore, the answer is (C) $4.00.

Assume That Omicron Uses the Entire $50 Million in Excess