please solve this Question ABC Corporation has the following financial information:• Current market price per share: $50• Number of outstanding shares: 1,000,000•Company plans to repurchase 100,000 shares•Current Price-to-Earnings (P/E) ratio: 10⚫ Current Earnings per Share (EPS): $5What will be the new EPS after the share repurchase, assuming total earnings remain constant?a) $5.56b) $5.25c) $4.75d) $5.00

The problem requires the determination of the EPS. Earnings per share (EPS) is a company's net…

Answered: ABC Corporation has the following…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter14: Distributions To Shareholders: Dividends And Repurchases

Section: Chapter Questions

Problem 2STP

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Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the balance sheet date, MJOs stock was selling for S25 per share. Required: Assuming MJOs dividend yield is 1%, what are the dividends per common share? Assuming MJOs dividend yield is 1% and its dividend payout is 20%, what is MJOs net income?
ed A company has the following balance sheet (market values): Liabilities + Equity Debt Equity Assets Cash Operating Assets 600 1000 400 1200 If the firm has 300, find its fair share price after it repurchases 100 worth of shares: (round your answer to the nearest 0.01)
Consider the financial statements for the REIT given below. Assume that the net revenue includes a loss of $4,000,000 on an asset sale. This REIT has issued 1,000,000 shares. Similar REITs are trading at FFO multiples of 10x. What valuation (share price) does this information imply for the REIT? Net Revenue Less: Less: Interest expense Net income O 49.2 O 129.2 O 95.2 89.2 Operating expenses Depreciation and amortization Income from operations $20,000,000 9,800,000 4,400,000 5,800,000 $ 1,280,000 $ 4,520,000
: let's assume Company XYZ has the following characteristics: Shares Outstanding: 1,000,000Current Share Price: $5Total Debt: $1,000,000Total Cash: $500,000 Based on the formula above, we can calculate Company XYZ's enterprise value is?
1. Compute for Enterprise Value 2. Assuming that the net debt and preferred shares are 800 and 60, respectively, calculate the equity value: 3. Assuming that there are 50 shares outstanding, calculate the intrinsic value per share: *
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Suppose that in July 2022, Nike Inc. had EBITDA of $6,561 million, excess cash of $12,944 million, $12,541 million of debt, and 1,473.2 million shares outstanding. a. Using the average enterprise value to EBITDA multiple from the table here,, estimate Nike's share price. b. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above? a. Using the average enterprise value to EBITDA multiple in the table, estimate Nike's share price. Nike's share price for this case will be $ 52.78. (Round to the nearest cent.) b. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table? The highest price will be $106.27. (Round to the nearest cent.) Data table TABLE 10.1 Stock Prices and Multiples for the Footwear Industry (excluding Nike), July 2022 Name Nike, Inc. Adidas AG Under Armour Puma AG Skechers U.S.A. Wolverine World Wide Steven Madden, Ltd. Rocky Brands,…
3. In December 2020, Nachil Co. had a share price of AED 60. They had 32 million shares outstanding, a market-to-book ratio of 10. In addition, Nachil had AED 250 million debt, AED 65 million in net income, AED 48 million in retained earnings, AED 637 in sales. Calculate P/E ratio and ROE according to Du Pont system.
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.
What Will the share price ??
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The following financial information is available on Morgan Company: Current per share market price: $58.90 Current (t = 0) per share dividend: $2.80 Expected long-term growth rate: 9.20% Morgan Company can issue new common stock to net the company $52.00 per share. Determine the cost of external equity capital using the dividend capitalization model approach. 13.95% O 15.08% 14.39% O 14.58%

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