Jenny hold 1,000 shares of C corp. The C corp. has 12 million shares outstanding. The value of assets of the C corp. is $400 million which includes $50 million of cash. The C corp. is expected to pay $40 million as dividend. What Jenny should do if she needs a dividend of $4,900. (A) Buy 52.22 shares (B) Buy 25.22 shares (C) Sell 25.22 shares (D) Sell 52.22 shares

Jenny hold 1,000 shares of C corp. The C corp. has 12 million shares outstanding. The value of assets of the C corp. is $400 million which includes $50 million of cash. The C corp. is expected to pay $40 million as dividend. What Jenny should do if she needs a dividend of $4,900. (A) Buy 52.22 shares (B) Buy 25.22 shares (C) Sell 25.22 shares (D) Sell 52.22 shares

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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Leonardo paid a total of $12,500 for stock that was $4 per share. If he sold all his shares for $20,312.50, how much profit on each share did he make? a. S2.5 b.8.5 C. $2.000 d. $6000
Trish owns 250 shares of stock, with a basis of $2,500. The stock split 2 for 1. Trish now owns ______ shares at ______ per share.500 shares at $5 per share.500 shares at $10 per share.250 shares at $5 per share.250 shares at $10 per share.
Joyce has never invested in shares before. She has come to you, as a prospective finance graduate, for some advice. In your conversations with Joyce, you have determined her Required Rate of Return (RRR) to be 8.75%. d) Joyce decided to buy 200 000 shares in GGG Ltd., giving her 2% ownership in the company (GGG Ltd. currently has 10 000 000 issued shares). One year later, GGG Ltd. announces a private placement of a further 10,000,000 shares, in order to raise funds for their new venture: Project COVID. (i) Describe two features of a private placement of shares. (ii) What is the major disadvantage to Joyce of the above private placement? Include in your answer the effect on her ownership. (iii) Identify one other source of equity funding Joyce, as a shareholder, would prefer. Justify your choice.
Marty Market owns 200 shares of Light Bulb Utility. The company pays a $6 per share dividend and the share price is $ 156. How many shares would Marty need to sell to create a homemade dividend of $15 per share?
A) Sam bought 3000 units of shares from Company A at a price of RM2.00 per unit. The company pays a 5% dividend to shareholders at the end of the year. Sam sold all the shares and made a profit of RMO.50 per share. Calculate the total return on investment.
no chagpt answers Marty Market owns 200 shares of Light Bulb Utility. The company pays a $6 per share dividend and the share price is $ 156. How many shares would Marty need to sell to create a homemade dividend of $15 per share?
Teasler Inc. currently trades at $40 and has 9 million shares outstanding with Net Income of $12 Million. The Board decides to use a rights offering to raise new capital. Each shareholder will receive one right for each share. Laila Sims currently owns 4,000 shares of Teasler stock. Four rights plus $34 cash are needed to buy one new share. The ex-rights date is in 30 days. a. What is the value of a right? b-1. How many of the new shares could Laila buy if she exercised all her rights? b-2. How much cash would this require? c. How many new shares is Teasler issuing and what are the proceeds? d. If the price of Teasler shares price moves to $30 what is the value of the right ( Assume still rights-on)
Azaria own 1,000 shares of Levilla's Inc. Levilla follows a constant dividend policy, implying that it will pay the same dividend per share each year indefinitely. The dividend per share is $2.30 per year. You intend to invest in Levilla’s stock and hold it for 2 years. At the same time, you would like to receive at least $17 per share as dividend in the second year. You wish to achieve your goal by following the homemade dividends strategy in a world without taxes. Will you be able to do so? Substantiate your answer through relevant computations. Investors require a return of 15% on Levilla’s stock.
2 Ms. Ayesha purchased 4,000 shares at Rs. 25 each on 15.10.19. She earned dividends as below: 8, 000, 9,000, 12, 000 and 14,000. She sold all her holdings at Rs. 135,000 on 15.10.23 What are her holding period returns and yields? What is annualized yield? Is Ms. Ayesha a good investor?
An investor currently owns 6104 shares of LIWK Inc. LIWK Inc. has a high-dividend-payout policy and this year will pay $5 cash dividend on its shares selling currently at $69. Assume that an Investor: wants a low-dividend-payout policy. is now taxed at 15% on capital gains and 15% on dividend distributions. originally paid a price for these shares equal to their current price. If an investor need only $500, how many shares should be acquired by the Investor on ex-date in order to undo the dividend policy of LIWK Inc.?
You own 6,000 shares of Irri-gate Co. The company has decided to pay a special dividend of $1.50 per share. Dividend payments are taxed at 15 per cent. You intend to reinvest your dividend back into the company, but the company does not have a dividend reinvestment program. To reinvest through your broker, you will have to pay a $55 commission. If the company's shares are trading at $13.50 following the dividend payment, how many additional shares will you be able to purchase?
Xtel Inc. with a total market value of $630 million has $30 million in excess cash and no debt. Xtel has 1 million shares outstanding. Xtelʹs board is meeng to decide whether to pay out its $30 million in excess cash as a special dividend or to use it to repurchase shares of the firm’s stock. You own 1,000 shares of Xtel stock. Assume that Xtel uses the entire $30 million to pay a special dividend. You are unhappy with Xtelʹs decision and would prefer that Xtel used the excess cash to repurchase shares. What is the number of shares that you would have to buy at ex-dividend price in order to undo the special cash dividend that Xtel paid?

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