A company’s shares are trading at R27. The company declares a dividend of R1.20 per share....
A company’s shares are trading at R27. The company declares a dividend of R1.20 per share. Shareholders are given the option of cash payment or in the form of a scrip dividend. How many new shares will an investor receive if they currently hold 1 000 000 shares and opt for the scrip dividend, assuming the share price is unchanged on payment date?
22 500 000
44 444
1 044 444
37 037
Homework Answers
Market price of a share = R$27
Dividend declared = R$1.20 per share.
Number of shares currently holding = 1,000,000 shares.
Total amount of Dividend = Number of shares holding * Dividend per share
= 1,000,000 * 1.20 = R$1,200,000
Therefore, number of new shares they will receive = Total amount of Dividend / Market price of a share
=R$1,200,000 / R$27
= 44,444 shares.
Add Answer to:
A company’s shares are trading at R27. The company declares a
dividend of R1.20 per share....
An investor owns 5 000 IBM shares, with a market value of R230 per share. If...
An investor owns 5 000 IBM shares, with a market value of R230 per share. If IBM announces a 1-for-5 consolidation. What will the new share price be? R38 R46 R1 150 R1 380 An investor holds 5 000 shares of VC Ltd, which was bought for R18 per share and is now priced at R20 per share. VC Ltd makes a 2-for-3 rights issue at R15.80. The investor decides to subscribe to the rights issue and purchases a further...
1. SSC declares a cash dividend of $1.00 per share, and there are 300,000 shares issued...
1. SSC declares a cash dividend of $1.00 per share, and there are 300,000 shares issued and 280,000 shares outstanding. How much money will SSC pay to the shareholders? What is the journal entry accountants will enter in to the accounting records?
Please calculate the company’s WACC based on the following information: Equity: $3 per share of dividend...
Please calculate the company’s WACC based on the following information: Equity: $3 per share of dividend payment in next year; annual dividend payment; steady dividend growth rate of 3% per year; $30 per share; 200 million shares outstanding Debt: 3 billion debt; interest expense of 240 million Preferred stock: $500 per share; 2 million shares outstanding; dividend of $25 per payment; Semiannual dividend payment Average corporate tax rate of 25%
You currently own 200 shares of stock valued at $6 per share. If the firm declares...
You currently own 200 shares of stock valued at $6 per share. If the firm declares a 1-for-4 reverse stock dividend you will own ________ shares valued at ________ per share. Multiple Choice 800;$6 800;$1.50 50; $6 50; $24
AP11-11A (Dividend distributions) Sauro Brothers Inc. is currently considering declaring a dividend to its common shareholders,...
AP11-11A (Dividend distributions) Sauro Brothers Inc. is currently considering declaring a dividend to its common shareholders, according to one of the following plans: 1. Declare a cash dividend of $10 per share. 2. Declare a 20% stock dividend. Sauro Brothers would distribute one common share for every fi ve common shares currently held. The company’s common shares are currently selling for $20 per share. Sauro Brothers is authorized to issue 125,000 common shares. To date, the company has issued 75,000...
need help with practice question An investor owns 500 shares of ABC corp. currently trading at...
need help with practice question
An investor owns 500 shares of ABC corp. currently trading at $10 per share. Each share pays $1 per year in dividends. Which of the following variables would not be affected if ABC did a 1-for-5 reverse stock split of its shares? a) The total cost of the investor's shares. Ob) The number of shares owned by the investor. c) The market price of each share. d) The dividend per share.
greenwood corporation has 80,000 shares of common stock outstanding . it declares at $1 per share...
greenwood corporation has 80,000 shares of common stock outstanding . it declares at $1 per share cash dividend on november 1 to stockholders of record on december 1. the dividend is paid on december 31 . prepare the entries on appropriate dates to record the declaration and payment of the cash dividend .
Shares of XYZ are currently trading at $19.29 per share. You open a long straddle position...
Shares of XYZ are currently trading at $19.29 per share. You open a long straddle position to capture any potential volatility from the upcoming earning announcement. You long a $0.92 call option with a strike price of $19.00. You long a $0.62 put option with a strike price of $19.00. If at maturity, XYZ shares are trading at $15.00 per share, what is the final value of your long straddle position (on a per share basis)?
(1)A company’s shares have just paid a dividend of 5 pence per share. The market expects...
(1)A company’s shares have just paid a dividend of 5 pence per share. The market expects dividends to grow annually at a rate of 3%, and requires a return on the shares of 7%per annum. At what price will the shares be trading?(£1.2875) (2)As (1), but dividends are expected to grow at 6% per annum for the next 3 years (so the t= 1dividend will be 5.3 pence etc.) and then remain at that level in perpetuity.
Need help answering this problem please Stock dividend Investor Personal Finance Problem Security Data Company has outstanding 60,000 shares of common stock currently selling at $36 per share. The fi...
Need help answering this problem please
Stock dividend Investor Personal Finance Problem Security Data Company has outstanding 60,000 shares of common stock currently selling at $36 per share. The firm most recently had earnings available for common stockholders of $106,000, but it has decided to retain these funds and is considering a 20% stock dividend in lieu of a cash dividend. a. Determine the firm's current earnings per share. b. If Sam Waller currently owns 500 shares of the firm's...
need help with practice question
An investor owns 500 shares of ABC corp. currently trading at $10 per share. Each share pays $1 per year in dividends. Which of the following variables would not be affected if ABC did a 1-for-5 reverse stock split of its shares? a) The total cost of the investor's shares. Ob) The number of shares owned by the investor. c) The market price of each share. d) The dividend per share.
Shares of XYZ are currently trading at $19.29 per share. You open a long straddle position to capture any potential volatility from the upcoming earning announcement. You long a $0.92 call option with a strike price of $19.00. You long a $0.62 put option with a strike price of $19.00. If at maturity, XYZ shares are trading at $15.00 per share, what is the final value of your long straddle position (on a per share basis)?
Need help answering this problem please
Stock dividend Investor Personal Finance Problem Security Data Company has outstanding 60,000 shares of common stock currently selling at $36 per share. The firm most recently had earnings available for common stockholders of $106,000, but it has decided to retain these funds and is considering a 20% stock dividend in lieu of a cash dividend. a. Determine the firm's current earnings per share. b. If Sam Waller currently owns 500 shares of the firm's...
Most questions answered within 3 hours.
-
Given that a sample of aluminium oxide has a Young's modulus of
393 GPa and a...
asked 49 minutes ago -
At a certain temperature, the equilibrium constant, Kc, for this
reaction is 53.3.
H2(g)+I2(g)−⇀↽−2HI(g)Kc=53.3
At this...
asked 2 hours ago -
Question1 ) The STL provides similiar classes called stack and
queue, both of which gave functions...
asked 3 hours ago -
For Questions 1-4, assume you have 5 bits available:
1. For (positive) integers: What is the...
asked 3 hours ago -
convert grams into vloume with the density of water being at
.997514 g/cm^3 at 23.1 Celsuis...
asked 5 hours ago -
Foreman company obtained a $20,000, 6% loan on May 1, 2018.
Principal and interest will be...
asked 5 hours ago -
5. Problem 11.05 (Discounted Payback)
eBook
Project L costs $60,000, its expected cash inflows are $14,000
per...
asked 5 hours ago -
1. Which of the following is true about politics and health
organizations?
A. Health organizations are...
asked 6 hours ago -
A space vehicle is coasting at a constant velocity of 18.1 m/s
in the +y direction...
asked 7 hours ago -
5) Use the following balanced equation to answer questions
(a)-(i).
3 Cu(s) + 8 HNO3(aq) →...
asked 6 hours ago -
A three-year maturity bond with a 12% annual coupon rate is
currently traded at par $1000...
asked 6 hours ago -
1.
What is the minimum volume to use in the Spec 20 cuvette in order
to...
asked 7 hours ago