assignment 7

QUESTION 17 Suppose you purchase one share of the stock of Cereal Correlation Company at the beginning of year 1 for $50. At the end of year 1, you receive a $1 dividend and buy one more share for $72. At the end of year 2. you receive total dividends of $2 (.e. $1 for each share) and sell the shares for $67.20 each The time-weighted return (geometric) on your investment is O 10.06%. O 8.77%. 19.73%. 17.60%.

Question 10?

Problem 4 Beta Co. currently has 1 million shares outstanding each selling for $50. It is contemplating a 2-for-1 stock split. The firm believes that its total market value would remain constant after the split. 1. What is the Beta's expected price after the split?* 3 pomts O a. $75 per share b. $100 per share O c. $25 per share d. $30 per share e. None of the above

Acquirer Target Newco Net Income 3500 1050 4495 No. of shares 2500 1100 4075 3600 EPS 1.4 0.95 Stock Price 31 36.5 PE 22.1 38.2 Ratio Ratio of Earnings to buyer 30.00% Dollar Value of Bid 44.3 Premium over target 21% Ratio of PE Paid to PE of Buyer 2.1 Answer 2 questions: 1. Is the deal accretive or dilutive? 2. How much in dollar terms, and percentage, is the deal accretive or dilutive?

13 ng: 00:50:28 Submit Test This Question: 1 pt 25 of 30 (18 complete) is Test: 30 pts p. Matilda Industries pays a dividend of $2.45 per share and is expected to pay this amount indefinitely. If Matilda's equity cost of capital is 9%, which of the following would be expected to be closest to Matilda's stock price? A. $27.22 B. $21.78 O C. $34.03 O D. $16.33 Click to select your answer. 000

elizabeth eaarns $9.50 a share, sells for $90, and pays a $6 per sharedeviden. the stock is split two for one and a $3 pers share cash dividend is diclared. what will be the new price of the stock? if the firms total earnings to do not change, what is the payout ratio before and after stock split?

Question 4 (5 points) Perpetual preferred stock from Stanley Inc. sells for $100 per share, and it pays an $5.50 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 8.00% of the price paid by investors. Which of the following is closest to the company's cost of preferred stock for use in calculating the WACC? OA) 4.27% O B) 5.98% O c) 5.50% OD) 5.09% E) 5.86%

A 42.

51. What is the amount of dividend per share that MOONSTONE paid on March 31, 2021? 1.50 0.85 1.59 1.70 No answer from the given choices. 52. How much is the ordinary share capital, December 31, 2021? 24,531,000 24,498,800 18,870,000 17,000,000 No answer from the given choices. 53. How much will is the total cash dividends paid during the year 2021? 9,000,000 6,750,000 12,399,900 12,439,800 No answer from the given choices. 54. Number of fractional warrants outstanding as of December 31, 2021 66,100 13,220 52,880 0 No answer from the given choices. 55. How much is the retained earnings appropriated for contingency loss? 300,000 200,000 250,000

Assume you sell short 1,000 shares of common stock at $35 per share, with initial margin at 50%. What would be your rate of return if you repurchase the stock at $25 per share? The stock paid no dividends during the period, and you did not remove any money from the account before making the offsetting transaction. A. 25.63% B. 57.14% C. 20.47% D. 77.23%

QUESTION 4 (a) XYZ Ltd is analysing the possible acquisition of ABC Group. The current market value of xyz Ltd is K8 million and ABC Group Pty Ltd is K6 million. It is estimated that the merger will generate a total annual after-tax cash flow of K1 million. The appropriate discount rate is for the incremental cash flow is 10%. Two offers are proposed: 1. Offer 50% of its shares 2. K6.5 million in cash. i) What is the cost of each alternative? What is the NPV of each alternative? ii) iii) Which alternative should XYZ use? iv) Which alternative should ABC want?

Plz correct solution.

Question 2 Calculate the fully diluted shares outstanding for the following potential target company. The target company's shares are trading in the market at $8.00. The potential acquirer has modelled that they are willing to pay $13.50 per share in an acquisition. The target company has basic shares outstanding of 100 million. The target company has employee share options outstanding, as outlined in Figure 1. Stock Options Outstanding Stock Options Exercisable Options Tranches 1 2 8656 AWN 3 4 7 Number Outstanding in millions 8 12 9 87 43 23 16 68 266 Weighted Average Exercise Price/Share 8.5 9.2 11.4 13.1 16.4 18.9 20.2 25.7 Number Outstanding in millions 2 4 7 71 36 15 14 47 196 Weighted Average Exercise Price/Share 8.6 9.1 11.9 12.4 16.55 18.61 20.6 25.4 Figure 1 The target also has convertible bonds, with the following note in its most recent financial statements: "the Company has outstanding $200 million of 5.25% convertible notes which are included in Long-term debt due within…

A22