Your portfolio is 200 shares of Callahan, Inc. The stock currently sells for $93 per share....

Question

Question

Your portfolio is 200 shares of Callahan, Inc. The stock currently sells for $93 per share. The company has announced a divid

Answer 1

Answer #1

With no taxes we would expect the stock price to drop by exactly the amount of the dividend, so the new stock price will be:

New stock price = $93 - $1.43

New stock price = $91.57

Stock value = 200 × $91.57

Stock value = $18,314

Answer 2

Similar Homework Help Questions

You own 280 shares of stock in Halestorm, Inc., that currently sells for $83.95 per share....

You own 280 shares of stock in Halestorm, Inc., that currently sells for $83.95 per share. The company has announced a dividend of $3.55 per share with an ex-dividend date of February 4. Assuming no taxes, what is the value of the stock on February 4?
You own 210 shares of stock in Halestorm, Inc., that currently sells for $82.90 per share....

You own 210 shares of stock in Halestorm, Inc., that currently sells for $82.90 per share. The company has announced a dividend of $3.20 per share with an ex-dividend date of February 4. Assuming no taxes, what is the value of the stock on February 4? Ο Ο S8290 Ο $86.10 Ο Ο S79.70 Ο S7865
You own 210 shares of stock in Halestorm, Inc., that currently sells for $82.90 per share....

You own 210 shares of stock in Halestorm, Inc., that currently sells for $82.90 per share. The company has announced a dividend of $3.20 per share with an ex-dividend date of February 4 Assuming no taxes, what is the value of the stock on February 4? a di Multiple Choice $82 90 $86.10 $81.30 $79.70 $78.65

You own 210 shares of stock in Halestorm, Inc., that currently sells for $82.90 per share. The company has announce...

You own 210 shares of stock in Halestorm, Inc., that currently sells for $82.90 per share. The company has announced a dividend of $3.20 per share with an ex-dividend date of February 4. Assuming no taxes, what is the value of the stock on February 4? Ο Ο S8290 Ο $86.10 Ο Ο S79.70 Ο S7865
Roll Corporation (RC) currently has 505,000 shares of stock outstanding that sell for $80 per share....

Roll Corporation (RC) currently has 505,000 shares of stock outstanding that sell for $80 per share. Assuming no market imperfections or tax effects exist, what will the share price be after: a. RC has a four-for-three stock split? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) New share price $ b. RC has a 20 percent stock dividend? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)...
You have a portfolio that has 125 shares of Stock A that sell for $54 per share and 112 shares of Stock B that sell for...

You have a portfolio that has 125 shares of Stock A that sell for $54 per share and 112 shares of Stock B that sell for $93 per share. What is the portfolio weight for Stock A? ENTER YOUR ANSWER AS A PERCENTAGE WITH ONE DECIMAL PLACE (e.g., 12.1) AND NOT AS A DECIMAL (e.g., 0.121). ROUND TO THE NEAREST TENTH OF A PERCENT.

Knight Inventory Systems, Inc., has announced a rights offer. The company has announced that it will take four rights to buy a new share in the offering at a subscription price of $29. At the clos...

Knight Inventory Systems, Inc., has announced a rights offer. The company has announced that it will take four rights to buy a new share in the offering at a subscription price of $29. At the close of business the day before the ex-rights day, the company’s stock sells for $50 per share. The next morning, you notice that the stock sells for $44 per share and the rights sell for $2 each. What is the value of the stock ex-rights?...
What are the portfolio weights for a portfolio that has 122 shares of Stock A that...

What are the portfolio weights for a portfolio that has 122 shares of Stock A that sell for $32 per share and 102 shares of Stock B that sell for $22 per share? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.)
What are the portfolio weights for a portfolio that has 132 shares of Stock A that...

What are the portfolio weights for a portfolio that has 132 shares of Stock A that sell for $42 per share and 112 shares of Stock B that sell for $32 per share? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.)

Vulcano Corporation stock currently sells for $76 per share. The market requires a return of 9...

Vulcano Corporation stock currently sells for $76 per share. The market requires a return of 9 percent on the firm's stock. If the company maintains a constant 2.5 percent growth rate in dividends, what was the most recent dividend per share pald on the stock? (Do not round intermediate calculations and round your answer to 2 decimel places, e.g., 32.16.) Dividend pald per share