In the above example, suppose the firm had paid $80 per share when buying back shares with its $100 in cash. (Assume that the firm can buy backfractional shares.)In this and the following two questions, fill in the blanks in the table below.CashOther assetsTotal market value ofstockSharesShare priceDo not use $ sign.Answer to nearest whole number.The missing value for a is:Beforebuyback$100$400$50010$50Afterbuyback0$400abC

A corporate move known as a buyback or share repurchase involves a company buying back its shares…

Answered: In the above example, suppose the firm…

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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Question A, B & C please. A study guide question. Suppose you sell short Tesla which is currently trading at $300 per share. You put $30,000 as cash into your brokerage account with an initial margin of 50%. The maintenance margin is 35%. a)How many shares of Tesla can you sell short? b)How far can the stock price increase before you get a margin call? c)Assume Tesla pays a dividend of $10 per share after you sell it short. At what price, will you get a margin call?
Stock Valuation methods: Free cash now model Suppose you are evaluating SolarHeat Co., a renewable energy startup that does not pay dividends, and you want to determine the value of their shares using a free cash flow model. To do this, you analyze their financial statements for several things: (1) present value of free cash flows, (2) sabilities, and (3) number of outstanding shares. After some analysis, you determine that the present value of SolarHeat Co/s free cash flows, labilities, and number of outstanding shares are $140 million, $35 million, and 30 million, respectively, and that the cash flows will show no growth in the future. Using this information, and the free cash flow model, SolarHeat Co's value per share ist $3.50 $3.82 4.10 Which of the following are limitations to the free cash flows model? Check all that apply It can result in inaccurate valuations when the firm's forecasted earnings are incorrectly estimated. It can result in inaccurate valuations when the firm's…
Suppose instead of paying a dividend, Payout Corp. announces that it will repurchase stockwith a market value of $10,000. What happens to the stock price when the repurchaseproposal is announced? subpart d needs to be solved
If Muscat Tiles has preferred stock at $120 per share, the cost of preferred stock 0.158, then what is a stated dividend if the flotation cost is 3%? Select one: O a. All the given choices are not correct O b. 20.03 Oc. 18.39 Od. 18.96 Oe. 19.53
Suppose a stock had an initial price of $86 per share, paid a dividend of $1.80 per share during the year, and had an ending share price of $74. Compute the percentage total return, dividend yield, and capital gains yield. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
What is the answers and the working
You purchased 395 shares of ABC common stock on margin at $25 per share. Assume the initial margin is 55% and the maintenance margin is 35%. Below the stock price of __________ you would get a margin call. Assume the stock pays no dividend and ignore interest on margin. Group of answer choices 17.31 18.40 14.67 16.80 16.41
Want accurateanswer
Anderson systems has just issued preferred stock. The stock has a 15% annual dividend and $100 par value and was sold at $125 par share. In addition, flotation cost of $15 par share must be paid. 1. Calculate the cost of preferred stock. 2. Explain two (2) disadvantages of discounted cashflow analysis.
Please help me with all answers thanku
Which of the following best describes what investors in shares seek compensation for? The risk-free rate of return plus time value of money OA. O B. The loss of interest on a building society account plus the dividend yield on shares Inflation and risk only OC Sacrifice of immediate use of cash otherwise available for consumption, inflation and risk OD.
Suppose a stock had an initial price of $56 per share, paid a dividend of $1.60 per share during the year, and had an ending share price of $50. Compute the percentage total return, dividend yield, and capital gains yield. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

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