provide answer In previous years, Cox Transport reacquired 3 million treasury shares at $22 per share and, later, 2 million treasury shares at$27 per share.By what amount will Cox's paid-in capital-share repurchase increase if Cox now sells 2 million treasury shares at $30 per shareand determines the cost of treasury shares by the FIFO method?(Enter answer in millions (i.e., 10,000,000 should be entered as 10).)

Step 1: Capital Gains: Understanding Profits from Asset TransactionsThe profit from an asset's…

Answered: In previous years, Cox Transport…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 4P

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In previous years, Cox Transport reacquired 3 million treasury shares at $22 per share and, later, 2 million treasury shares at $27 per share.By what amount will Cox's paid-in capital-share repurchase increase if Cox now sells 2 million treasury shares at $30 per share and determines the cost of treasury shares by the FIFO method? (Enter answer in millions (i.e., 10,000,000 should be entered as 10).)
In previous years, Cox Transport reacquired 2 million treasury shares at $24 per share and, later, 1 million treasury shares at $27 per share. If Cox now sells 2 million treasury shares at $29 per share and determines cost as the weighted-average cost of treasury shares, by what amount will Cox's paid-in capital share repurchase increase? (Enter your answer in millions (i.e., 10,000,000 should be entered as 10).) Paid-in capital-share repurchase will increase by million
In previous years, Cox Transport reacquired 3 million treasury shares at $25 per share and, later, 1 million treasury shares at $29 per share. If Cox now sells 2 million treasury shares at $32 per share and determines cost as the weighted-average cost of treasury shares, by what amount will Cox’s paid-in capital - share repurchase increase? (Enter your answer in millions (i.e., 10,000,000 should be entered as 10).)
In previous years, Cox Transport reacquired 3 million treasury shares at $25 per share and, later, 1 million treasury shares at $29 per share. If Cox now sells 2 million treasury shares at $32 per share and determines cost as the weighted-average cost of treasury shares, by what amount will Cox's paid-in capital-share repurchase increase? Note: Enter your answer in millions (i.e., 10,000,000 should be entered as 10). Paid-in capital-share repurchase will increase by million
In previous years, Cox Transport reacquired 2 million treasury shares at $20 per share and, later, 1 million treasury shares at $26 per share. By what amount will Cox’s paid-in capital—share repurchase increase if it now sells 1 million treasury shares at $29 per share and determines cost as the weighted-average cost of treasury shares?
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Firm B has a net income of $2 million and has 1 million shares of common stocks outstanding. Firm B’s shares currently trade at $32 per share. The management is planning to use available cash to purchase 20% of Firm B’s shares in the open market. The repurchase is expected to have no effect on either net income or Firm B’s P/E ratio. What will be the share price of Firm B following the share repurchase? After 5 to 1 share split, Firm S paid a dividend of $0.75 per share, which represents 9 percent increase over last year’s pre-split dividend. What was last year’s dividend per share?
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The shares of a company trade today for $37. The company is fairly valued at this current price. There are 39 million shares outstanding prior to the repurchase. The company has announced that it intends to spend $265 million on an open market repurchase. Assume that the company is able to repurchase shares at a price of $39.00. Assume that the company is all-equity financed. What fraction of shares does the company repurchase? What is the share price after the repurchase?
Cliff Corp. (CC) has an enterprise value (MV equity + debt – cash) of $330 million, $50 million in cash and $30 million in debt. CC has 10 million shares outstanding and is considering using its $50 million in cash to repurchase shares. What s CC’s share price prior to the prior to the repurchase? How many shares will CC repurchase? Suppose news is released that increases enterprise value to $350 million immediately after the repurchase, then what is CC’s new share price? If management knows about the news prior to the repurchase, should they repurchase before or after the news is released?

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