a) | Cash received as dividend for the one share held = 5500/250 = | $ 22.00 |
Share price after dividend = (250*33-5500)/250 = | $ 11.00 | |
Worth of total investment | $ 33.00 | |
b) | Cash received on offering the share for repurchase | $ 33.00 |
Built Rite Corp. is evaluating an extra dividend versus a share repurchase. In either case, $5,500 would be spent. Current earnings are $0.80 per share, and the stock currently selts for $...
Yellow Corp. is evaluating an extra dividend versus a share repurchase. In either case, $5,500 would be spent. Current earnings are $1.16 per share and the stock currently sells for $45 per share. There are 2,300 shares outstanding. Ignore taxes and other imperfections. If Yellow Corp. pays a dividend, what will be the dividend per share? After the dividend is paid, how many shares will be outstanding and what will the price per share be? Enter your answers rounded to...
Yellow Corp. is evaluating an extra dividend versus a share repurchase. In either case, $5,500 would be spent. Current earnings are $1.16 per share and the stock currently sells for $45 per share. There are 2,300 shares outstanding. Ignore taxes and other imperfections. NOTE: Fractional shares are possible (Ex. 0.54 shares) Dividend = 2.39 Shares outstanding = 2300 Stock price = 42.61 After the $2.39 dividend, the price falls to $42.61 per share. EPS=1.16 P/E Ratio =36.73 If Yellow Corp. goes...
Yellow Corp. is evaluating an extra dividend versus a share repurchase. In either case, $5,500 would be spent. Current earnings are $1.16 per share and the stock currently sells for $45 per share. There are 2,300 shares outstanding. Ignore taxes and other imperfections. NOTE: Fractional shares are possible (Ex. 0.54 shares) Dividend = 2.39 Shares outstanding = 2300 Stock price = 42.61 After the $2.39 dividend, the price falls to $42.61 per share. What are earnings per share (EPS) and the...
18. The company is evaluating an extra dividend versus a share repurchase. In either case, $7,500 would be spent. Current earnings are $1.24 per share, and the stock currently sells for $32 per share. There are 5,000 shares outstanding. Ignore taxes and other imperfections. You own one share of stock in this company. If the company issues the dividend, your total investment will be worth __ as compared to if the company opts for a share repurchase. Please show your...
Flychucker Corporation is evaluating an extra dividend versus a share repurchase. In either case $5,500 would be spent. Current earnings are $.95 per share, and the stock currently sells for $30 per share. There are 230 shares outstanding. Ignore taxes and other imperfections. a. What will be the effect on Flychucker's EPS and PE ratio under the two different scenarios? 7 points b. In the real world, which of these actions would you recommend? Why? 3 points
Flychucker Corporation is evaluating an extra dividend versus a share repurchase. In either case $14,000 would be spent. Current earnings are $2.00 per share, and the stock currently sells for $50 per share. There are 2,000 shares outstanding. Ignore taxes and other imperfections. a. Evaluate the two alternatives in terms of the effect on the price per share of the stock and shareholder wealth per share. Alternative I Extra dividend Price per share $ Shareholder wealth...
Taco Time Corporation is evaluating an extra dividend versus a share repurchase. In either case, $31,360 would be spent. Current earnings are $3.00 per share, and the stock currently sells for $82 per share. There are 4,900 shares outstanding. Ignore taxes and other imperfections. What will the company's EPS and PE ratio be under the two different scenarios? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Extra Dividend Share Repurchase EPS PE Ratio
Taco Time Corporation is evaluating an extra dividend versus a share repurchase. In either case, $31,360 would be spent. Current earnings are $3.00 per share, and the stock currently sells for $82 per share. There are 4,900 shares outstanding. Ignore taxes and other imperfections. What will the company's EPS and PE ratio be under the two different scenarios? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) X Answer is complete but not entirely...
Flychucker Corporation is evaluating an extra dividend versus a share repurchase. In either case $18,000 would be spent. Current earnings are $1.70 per share, and the stock currently sells for $64 per share. There are 4,000 shares outstanding. Ignore taxes and other imperfections. a. Evaluate the two alternatives in terms of the effect on the price per share of the stock and shareholder wealth per share. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,...
Galles Corporation is evaluating an extra dividend versus a share repurchase. In either case, $12,000 would be spent. Current earnings are $1.90 per share, and the stock currently sells for $48 per share There are 5,000 shares outstanding. Ignore taxes and other imperfections a. Evaluate the two alternatives in terms of the effect on the price per share of the stock and shareholder wealth per share. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)...