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?
(b) The owners' equity account for Rantuil Utilities Berhad are shown below: Common Share (RM2 par) Capital Surplus Retained earnings Total shareholder's equity RM30,000 RM285,000 RM648,100 RM963,100 If Rantuil Utilities Berhad currently sells for RM30 per share and a 10 percent share dividend is declared, i. Determine the number of new shares that will be distributed. ii. Reconstruct new owners' equity account for Rantuil Utilities Berhad.
REQUIRED: What is the net income for the current year?
Using Problem 1, how much is the book value per ordinary share assuming the preference shares are non-cumulative and participating up to 12%? *
Calculate the transaction value (in $ thousands) of a theoretical company based on the information provided below. Current Share Price $18.00 Shares Outstanding (Thousands) 5,000 Total Debt ($ Thousands) $3,700 Cash ($ Thousands) $2,100 Acquisition Premium 10%
Compute for: Enterprise Value and Equity Value
Solve the problem.
An entity has the following information in its balance sheet. Ordinary shares of TZS 50 each TZS 2,500,000 12% Unsecured loan notes 1,000,000 The ordinary shares are currently quoted at TZS 130 each and the loan notes are trading at TZS 72 per shs100 nominal. The ordinary dividend of TZS 15 has just been paid with an expected growth rate of 10%. Corporation tax is currently 30% Required: Calculate the Weighted Average Cost of Capital (WACC) for this entity.
Bulgasal Company provided the following data: 2020 2021 Share capital (P100 par value) 5,000,000 5,850,000 1,000,000 3,400,000 During the current year, the entity declared and paid cash dividends of P1,000,000 and also declared and issued a Share premium 1,600,000 Retained earnings 4,500,000 share dividend. There were no other changes in shares issued and outstanding during the year. What is the net income for the current year?

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