2 Million shares of common stock outstanding, net income 55,000 and P/E ratio for the stock is 10. Management is planning a 20% dividend.
What will the price of stock be after dividend? If investor owns 100 shares before dividend does the total value of his share change? Explain.
What formula can I use in Excel to solve this?© BrainMass Inc. brainmass.com June 4, 2020, 1:05 am ad1c9bdddf
Solution provides steps necessary to calculate the value of the stock after dividend.