Homework Answers
a. Earnings per share = Stock price / Number of shares = $6,000,000 / 3,000,000 = $2.00
Stock price = P/E ratio × Earnings per share = 10 × $2.00 = $20.00
b. Dividends per share = Total dividends / Number of shares = $2,000,000 / 3,000,000 = $0.67
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.com/hm.tpx 8. 1000 value 10.00 points Problem 18-21 Cash dividend versus stock repurchase [LO18-5) The Carlton...
Check my work The Carlton Corporation has $5 million in earnings after taxes and 2 million...
Check my work The Carlton Corporation has $5 million in earnings after taxes and 2 million shares outstanding. The stock trades at a P/E of 20. The firm has $4 million in excess cash. a. Compute the current price of the stock (Do not round intermediate calculations and round your answer to 2 decimal places.) Current price ces b. If the $4 million is used to pay dividends, how much will dividends per share be? (Do not round intermediate calculations...
The Carlton Corporation has $6 million in earnings after taxes and 1 million shares outstanding. The...
The Carlton Corporation has $6 million in earnings after taxes and 1 million shares outstanding. The stock trades at a P/E of 15. The firm has $3 million in excess cash. a. Compute the current price of the stock. (Do not round intermediate calculations and round your answer to 2 decimal places.) b. If the $3 million is used to pay dividends, how much will dividends per share be? (Do not round intermediate calculations and round your answer to...
tpx 3. 10.00 points Problem 18-18 Stock dividend and its effect [LO18-4] a some kind of...
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Taco Time Corporation is evaluating an extra dividend versus a share repurchase. In either case, $31,360...
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...
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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
6. Stock repurchases Companies with excess cash often employ share repurchase plans in place of or...
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The Nearside Co. just paid a dividend of $1.75 per share on its stock. The dividends...
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Check my work The Carlton Corporation has $5 million in earnings after taxes and 2 million shares outstanding. The stock trades at a P/E of 20. The firm has $4 million in excess cash. a. Compute the current price of the stock (Do not round intermediate calculations and round your answer to 2 decimal places.) Current price ces b. If the $4 million is used to pay dividends, how much will dividends per share be? (Do not round intermediate calculations...
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