Xyz corporation has announced a quarterly 150 dividend its


XYZ Corporation has announced a quarterly $1.50 dividend. Its current market price is $75 per share. The stock will go ex-dividend tomorrow. Ignoring tax effects what will it sell for tomorrow? What will be the balance sheet impact of the dividend if there are30,000 shares outstanding? If instead of spending $180,000 on dividend payments for theyear it buys shares instead what effect will this have on the firm’s equity, shares outstanding, its share price?

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Financial Management: Xyz corporation has announced a quarterly 150 dividend its
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