Delta Cabinets has 13,000 shares of stock outstanding at a market price of $19 a share. The earnings per share are $1.34. The firm has current assets of $49,000, net fixed assets of $220,000, and total liabilities of $187,000. Today, the firm is paying a cash dividend of $.40 a share. Ignore taxes. After the dividend, the firm's:
A. book value per share will be $6.31.
B. price-earnings ratio will be 13.88.
C. earnings per share will be $.94.
D. stock price will be $19.00.
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