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Dunder Imports has common stock outstanding at a market price of $57 per share. The total market value of the firm is $5,130,000. The firm plans on liquidating one of its divisions for $500,000 in cash, after taxes, and distributing the proceeds to the shareholders in the form of a liquidating dividend. What will be the amount per share of that dividend

Respuesta :

Answer:

Dividend per share is 5.55.

Explanation:

Common stock has the market price = $57 per share

The total market value of the firm = $5130000

The liquidating amount of its division = $500000

Now we have to find the amount per share of the dividend, below is the calculation.

Number of outstanding shares  = 5130000 / 57 = 90000

Dividend = 500000

Dividend per share = 500000 / 90000 = 5.55

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