Question

Chandler Corporation has 1 million shares outstanding. The current price per share is​ $20. If the company decides to pay a​$2 million dollar​ dividend, the company will have​ ________ shares outstanding worth approximately​ ______.A.​900,000, $20 per shareB.​1,000,000, $18 per share.C.​900,000, $22.22 per share.D.​1,000,000, $20 per share.

Answer 1

Answer:

B.​1,000,000, $18 per share

Explanation:

The computation is shown below:

Given that

Number of shares outstanding = 1 million

The current price per share = $20

And, the dividend received = $2 million dollar

So, the number of shares outstanding is given i.e 1,000,000 shares and the worth is $18 per share that is computed below:

= Current market share - dividend

= $20 - $2

= $18 per share