The Baldwin Locomotive Works Inc manufactures steam locomotives for North American railways. Selected financial information for Baldwin is provided in the table below

The CFO, Matthias Baldwin, wants to distribute $1B of cash by means of an extra dividend. What will the stock price be after the dividend?

Baldwin Locomotive Works Inc
Selected Financial Information
Stock Price $62.725
Cash $1,000M
Market Capitalization $9,408.75M
Shares Outstanding 150M
Debt $0

A) $56.06
B) $62.73
C) $68.73
D) $69.39
E) $72.26


A

Business

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