5. Regular Dividends The balance sheet lö terms. There are 12,000 shares of stock outstanding. Market Value Balance Sheet Cash Fixed assets Total $ 58,000 445,000 $503,000 Equity Total $503,000 $503,000 The company has declared a dividend of $1.90 per share. The stock goes ex dividend tomorrow. Ignoring any tax effects, what is the stock selling for today? What will it sell for tomorrow? What will the balance sheet look like after the dividends are paid? the company has announced it is

5. Regular Dividends The balance sheet lö terms. There are 12,000 shares of stock outstanding. Market Value Balance Sheet Cash Fixed assets Total $ 58,000 445,000 $503,000 Equity Total $503,000 $503,000 The company has declared a dividend of $1.90 per share. The stock goes ex dividend tomorrow. Ignoring any tax effects, what is the stock selling for today? What will it sell for tomorrow? What will the balance sheet look like after the dividends are paid? the company has announced it is

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Think about the information below: Capital surplus Retained earnings Common stock ($1 par valve) TOTAL OWNERS' EQUITY Dollars ($) 400,000 900,000 5,000,000 6,300,000 Shares are currently trading around $51 each. What impact would a 10% stock dividend have on the equity accounts? Provide the updated numbers for each line item following the dividend.
only by formula A stock currently sells for $55. The dividend yield is 3.3 percent and the dividend growth rate is 4.6 percent. What is the amount of the dividend that was just paid?
Q: Corn, Inc., has an odd dividend policy. The company has just paid a dividend of $6 per share and has announced that it will increase the dividend by $2 per share for each of the next four years, and then never pay another dividend. suppose you require an 11 percent return on thecompany’s stock.Required:a) how much will you pay for a share today?b) Is the value of this stock dependent upon how long you plan to hold it? would this affect the value of the stock today?c) What happens if a company has a constant growth g that exceeds its cost of capital ks?Will many stocks have expected g> ks in the short run? In the long run (that is, forever)?
Assuming the following: 1. 4mm outstanding shares 2. $40mm of pre-tax Net Income 3. $9mm of Depreciation 4. PE multiple of 16x 5. $1.75 quarterly dividend which is expected to grow by 4.23% 6. Book value of $115mm 7. Current share price of $125 8. Tax rate of 25% 9. EBITDA Multiple of 7x. What is the market value of equity? A form of the correct answer would be $53mm.
need part b
Dipstick Auto Repairs is selling shares for $42.00 per share and pays a dividend. The projected growth rate for the company is 2.50%. Assuming the stocks required rate of return is 5.0%. What was the last dividend, Do? (Round to two decimals) $1.06 $1.02 $2.08 O $1.75 O $0.85
6. Cost of common stock or retained earnings. XYZ Corporation just paid a dividend of $1.00 for every share of its common stock and the management sees the dividend can grow 5% a year forever. The stock currently sells for $21. What is the cost of the stock or cost of retained earnings? 10%
Company B's dividends were; $2 eight years ago, $2.15 seven years ago, $1.95 six years ago, $2.20 five years ago, $2.30 four years ago, $2.38 three years ago, $2.45 two years ago, $2.15 last year and just paid $2.35. If the required rate of return is 8%, what should the current price of stock be?
An electric company must decide between two options for managing the blowdown water from its cooling tower. Option 1 is to continue the lease on 50 acres of land for another 5-year period and dispose of the water by spray irrigation. The landowner will move the pipe around as necessary and maintain the spray nozzles and valves. The previous lease cost $125,000 per year with payments due midway through each year. Now the landowner will require beginning of year payments of $180,000 each year. Option 2, which releases the 50 acre tract of land, involves purchasing a treatment system that will allow the recycling of most of the blowdown water. This system will have an initial cost of $1,600,000 and an AOC of $58,000 per year. However, the company will save $220,000 per year because it will not have to purchase as much make-up water as with option 1. At the end of 5 years, the company will be able to sell the equipment back to the local equipment supplier for 30% of the first cost. If the…
YLD NET VOL PE 100s CLOSECHG BiminiMtg 1.99e 217 5 1575 9.17 0.12 BiomdRityTr 1.08 4.4 55 4250 24.30 -0.10 24 16514 24.83 1.10 WE Biovail 50p BisysGp If BlackDeck 1.12 26 6970 14.22 0.21 *** 1.3 13 9554 87.89 0.93 BlackHills 1.28 BikRk A 1.20 3.6 45 3350 35.25 0.64 0.52 901109 BlockHRs.50 2.0 14 31753 24.45 -0.10 1.1 34 dd 16535 3.73 -0.02 52-WEEK HI LO STOCK (DIV) 16.13 8.65 26.06 19.39 27.28 13.74 16.71 12.44 93.71 75.70 44.63 29.19 113.87 69.38 30 22.99 10.65 3.19 Bikbstr A.06) 10.18 2.96 Blkbstr B.04e 19.60 14.60 Blountint W 11.41 8.45 BISqlsrael 52e 4.7 Bluegreen 24.75 12.10 11 www 18.25 8.25 BluelinHidgs 50 4.4 18 33.84 17.704Blyth .46f 2.2 11 19.51 17.58 BdwikPipePtar 72.40 49.52 18 11.50 A 1.2 1618 3.39 0.06 1852 16.66 0.73 22 10.96 0.62 3646 16.70 0.90 791 11.39 0.14 1848 20.69 -0.26 2168 18.64 0.66 1.7 25 49135 70.44 0.20 ww www. *** 6.59 2.67 dd *** Boeing 1.20f BoisDArcEngy n Bombay BordersGrp 40f 19 16 BorgWarner 641 1.0 15 27.27 19.85 BostBeer 23 422 24.95 -0.05 76.67…
Allstate Corp (ALL) recently paid a dividend of $5.51. The required rate of return is 6.97%. Other things held constant, what would the stock’s price be if the growth rate was 2.75%? A. $104.57 B. $134.16 C. $149.88 D. $179.85
ABC justpaid a dividend of D0 = $4. Analysts expect the company’s dividend to grow by33% this year, by 28% in Year 2, and at a constant rate of 6% in Year 3 andthereafter. The required return on this stock is 17%. What is the best estimateof the stockâ€™s current market value?Note: Enter your answer rounded off to two decimal points.Do not enter $ or comma in the answer box. For example, if your answer is$12.345 then enter as 12.35 in the answer box.

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