Question: A firm has 10 million shares outstanding with a market price of $20 per share. The firm has $25 million in extra cash (short-term investments) that it plans to use in a stock repurchase; the firm other has no financial investments or any debt. What operation, is the firm's shares will repurchase? value of and how many remain after the

Q: When can shares be Forfeited?

A: Shares are issued by the company to the public for ownership in the company The shares have an…

Q: What is the expected return of the corporate bond​ investment?

A: Expected return of the corporate bond investment is calculated using following equation Expected…

Q: Where can investors buy and sell preferred stock from other investors

A: when it comes to trading preferred stock, investors usually go through online brokerage platforms.…

Q: Why do we need to decrease the stock holdings and increase the cash orbond holdings? Explain with an…

A: One of the important decisions which is taken by the financial manager is to maintain the minimum…

Q: What is different between residual dividend, dividend policy and share repurchase ?

A: To arrange the funds for the business operations, firms issue various securities and pay return on…

Q: What are the three (3) components that the return from shares can be broken down into?

A: The capital of a corporation consists of units of shares that are used by the corporation to acquire…

Q: What are Nike’s choices in accounting for the share repurchases?

A:

Q: What is a capital gain? O The total amount of return expected from a stock investment. O The present…

A: A capital gain is the profit that an investor realizes when they sell an asset, such as a stock, for…

Q: How does forward pe effect the stock market?

A: P/E refers to the price earnings ratio. It is one of the important valuation metrics that we use in…

Q: Why do people trade stocks? Your answer should relate to company’s stock value.

A: Stock is a capital market instrument that gives the holder an ownership interest in the company with…

Q: How are taxes paid on stocks owned ?

A: Tax on stock owned occurs on two situations: 1) Dividend: when dividend is paid by company,  Tax is…

Q: n the general stock and bond markets lead to changes in the required rate of return on a firm’s…

A: Step 1 The required reimbursement rate is the minimum refund that an investor will receive from…

Q: When does reverse stock split occurs?

A: Stock split means reducing the face value of single share. For example, A share of $100 will be…

Q: What are the advantages and disadvantages of higher dividends to investors?

A: Dividend can be defined as the division of profits accumulated by the company to its shareholders in…

Q: How to know what price target to buy a stock?

A: A price target is an analyst's forecast for the future value of a commodity. Price targets can apply…