Problem 3The balance sheet for Apple Pie Corp. is shown here in market valueterms. There are 5,000 shares of stock outstanding.Market Value Balance Sheet$16,000Fixed assets$159,000CashEquity $175,000Total$175,000Total $175,000The company has announced that it is going to repurchase $4,350 worth ofstock. What will the price of the stock be after this repurchase?

The value of shares and stocks are intrinsic and market value. The market value of a share is…

Problem 3 The balance sheet for Apple Pie Corp. is shown here in market value terms. There are 5,000 shares of stock outstanding. Market Value Balance Sheet Cash $16,000 Equity $175,000 Fixed assets S159,000 Total $175,000 Total $175,000 The company has announced that it is going to repurchase $4,350 worth of stock. What will the price of the stock be after this repurchase?

Problem 3 The balance sheet for Apple Pie Corp. is shown here in market value terms. There are 5,000 shares of stock outstanding. Market Value Balance Sheet Cash $16,000 Equity $175,000 Fixed assets S159,000 Total $175,000 Total $175,000 The company has announced that it is going to repurchase $4,350 worth of stock. What will the price of the stock be after this repurchase?

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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M2
question 2 a) Fr berhad has 6.5 million shares of common stock outsdanding with a market price of RM14 per share. This company has a market value of RM10 million outstanding preferred stock. their corporate bonds outstanding is 25,000 with face value of RM1000 and selling at 90% of face value on the bond market.The cost of equity is 14%, the cost preferred is 10% and the pre- tax cost of debt is 7.5%. Their marginal corporate tax rate is 30%. i) Calculate the market value for common stoc preferred stock, corporate bond and firm. ii)calculate the firm's Weightage average cost of capital (WACC).
Problem 5 The owners' equity accounts for Alexander International are shown here: $ 40,000 335,000 Common stock ($0.50 par value) Capital surplus Retained earnings Total owners' equity 738,120 $1,113,120 a If Alexander stock currently sells for $25 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change.
Problem 17-5 How Corporations Pay Dividends (LO1) The stock of Payout Corporation will go ex-dividend tomorrow. The dividend will be $0.40 per share, and there are 15,000 shares of stock outstanding. The market-value balance sheet for Payout is shown below. Ignore taxes. Assets Cash Fixed assets $ 280,000 1,070,000 a. Price b. Price Liabilities and Equity Equity $ 1,350,000 a. What price is Payout stock selling for today? b. What price will it sell for tomorrow? Note - For all requirements, round your answer to 2 decimal places.
. Net Cash Flows and NPVs for different discount rate for projects S and L are given below Net Cash Flows ($) Discount Rate (%) NPVS NPVL Year (t) Project S Project L 0% $800 $1100 0 $(3000) $(3000) 5 554.32 1 1500 400 10 161.33 2 1200 900 15 (90.74) (259.24) 3 800 1300 20 (309.03) (565.97) 4 300 1500 h) If projects are independent (not mutually exclusive), which project(s) would you accept? i) at 5% ii) at 15%
task 2
8. Problem 15-09 (Shares Remaining after Recapitalization) 8€ eBook Shares Remaining After Recapitalization Dye Trucking raised $150 million in new debt and used this to buy back stock. After the recap, Dye's stock price is $7.50. If Dye had 70 million shares of stock before the recap, how many shares does it have after the recap? Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number. million shares
13. The simplified balance sheet for MGT Inc. is shown below in market value terms. There are 126,000 shares of stock outstanding. The firm has just announced that it will repurchase $126,560 worth of stock. What will be the market share price of the firm after the repurchase is completed? $20 Cash Fixed Assets Total MGT INC. Market Value Balance Sheet As at December 31, 2015 $630,000 $1,890,000 $2,520,000 Debt Equity Total $0 $2,520,000 $2,520,000
Q13 The Engineering Company currently has 100,000 outstanding stocks selling at OMR 100 each. The firm has net profits of OMR 1,000,000 and wants to make new investments of OMR 2,000,000 during the period. The firm is also thinking of declaring a dividend of OMR 5 per share at the end of the current fiscal year. The market price of per stock at the end of the current year is expected to be OMR 120. How many number new stocks to be issued by the firm assume that dividend is declared under MM model? a. 10,000 stocks b. 15,000 stocks c. 20,000 stocks d. 12,500 stocks
4
Ed Long promised to pay his son $320 semiannually for 12 years. Assume Ed can invest his money at 6% in an ordinary annuity. How much must Ed invest today to pay his son $320 semiannually for 12 years?
Question 4 c) Tucker’s National Distributing has a current market value of equity of $10,665. Currently, the firm has excess cash of $640, total assets of $22,400, net income of $3,210, and 500 shares of stock outstanding. Tucker’s is going to use all of its excess cash to repurchase shares of stock. What will the stock price per share be after the stock repurchase is completed?

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