Consider company Macrosoft, whose current stock price is 542. The board of directors of Macrosoft has decided to engage a spin-off. Each shareholder of Macrosoft will receive 3.50232 shares of Coco Colo, whose stock price is 8.34, for each share of Macrosoft owned. Consider an investor who currently owns 152 shares of Macrosoft. What is the amount of cash that this investor will receive after that spin-off?
Consider company Macrosoft, whose current stock price is 542. The board of directors of Macrosoft has decided to engage a spin-off. Each shareholder of Macrosoft will receive 3.50232 shares of Coco Colo, whose stock price is 8.34, for each share of Macrosoft owned. Consider an investor who currently owns 152 shares of Macrosoft. What is the amount of cash that this investor will receive after that spin-off?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
H3.
Consider company Macrosoft, whose current stock price is 542. The board of directors
of Macrosoft has decided to engage a spin-off. Each shareholder of Macrosoft will
receive 3.50232 shares of Coco Colo, whose stock price is 8.34, for each share of
Macrosoft owned. Consider an investor who currently owns 152 shares of Macrosoft.
What is the amount of cash that this investor will receive after that spin-off?
A) 4436.88
B) 2.941
C) 4439.821
D) 636.781
Please show proper step by step calculation
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