At this time, the company had Rp. 500 billion of cash available to be distributed to shareholders and Rp. 9,500 billion in other assets. The company's equity capital is IDR 10,000 billion. It is assumed that the company's book value is equal to its market value. The company has 250 million shares in circulation and a net profit of IDR 1,400 billion. What is the price of the company's shares after using the available cash to be distributed in the form of cash dividends

Paying dividend of 500 billion will reduce the cash (ie asset side) and Equity (specifically reserves and surplus, liability side) by 500 billion

Post payment of dividend book value of equity will be 10000 - 500 = 9500

Since it is given in the question that book value of equity is the market value of the equity therefore new market value of equity = 9500

to find out new share price we will have to divide new market value of equity by number of shares

New share price post dividend distribution = 9500 / 250 = 38

Therefore price of company's share after using available cash for dividend distribution = 38