>> 1 2 Adeelza Deel Inc. has $40 million in total assets which includes $4 million in excess cash. The firm expects $27 million in net income this year of which 50% will be paid out as dividends to the 3,800,000 shares outstanding. In an effort to disburse the excess cash to its investors, the firm plans on buying back 10% of its shares outstanding. If an individual investor owns 500 shares, what will the investor recieved in total dividends after the stock buy-back? 3 45678 9 10 11 12 13 14 B C
>> 1 2 Adeelza Deel Inc. has $40 million in total assets which includes $4 million in excess cash. The firm expects $27 million in net income this year of which 50% will be paid out as dividends to the 3,800,000 shares outstanding. In an effort to disburse the excess cash to its investors, the firm plans on buying back 10% of its shares outstanding. If an individual investor owns 500 shares, what will the investor recieved in total dividends after the stock buy-back? 3 45678 9 10 11 12 13 14 B C
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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Transcribed Image Text:>>
1
2
Adeelza Deel Inc. has $40 million in total assets which
includes $4 million in excess cash. The firm expects $27
million in net income this year of which 50% will be paid out
as dividends to the 3,800,000 shares outstanding. In an effort
to disburse the excess cash to its investors, the firm plans on
buying back 10% of its shares outstanding. If an individual
investor owns 500 shares, what will the investor recieved in
total dividends after the stock buy-back?
3
45678
9
10
11
12
13
14
B
C
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