_________________________________________________________________ FINA 6340 Midterm Exam (Chapters 14, 15, and 16) To be submitted via Blackboard by...

8. Palm Tree Corporation’s value of operations is estimated to be $650 million. Palm Tree has $100 million in debt (it has no preferred stock) and 10 million shares of common stock outstanding. Suppose Palm Tree has decided to distribute to its shareholders $65 million, which it is presently holding in T-bills.